In this context, it is worth pointing to a key feature of the euro area economy, namely that its degree of openness, and thus its dependency on foreign demand, is much lower than that of individual Member States. Developments in the world economy will nevertheless remain important, in particular through their repercussions via financial markets, and need to be monitored carefully.
But if conditions for growth are right from the domestic side, the euro area economy should, in principle, be fairly resistant to potential shocks to foreign demand. Let me now turn to developments in prices. Looking back, the average rate of increase in consumer prices in 1999 was just over 1%, the same as it had been in 1998.