Annual consumer price increases in the euro area rose slightly from 0.8% in January 1999 to 1.0% in May. This small increase is mainly due to the impact of higher oil prices.
An unsustainable fiscal situation in one country has repercussions for monetary union as a whole. You can compare this to what economists call the “tragedy of the commons”. Just as overfishing creates negative externalities for other countries, excessive public debt harms the euro area as a whole. Excessive debt in one member state drives up longer-term interest rates for all euro-area countries.