The institutional balance upon which this dialogue rests, while adequate and balanced, is delicate and at times fragile. We thus take note with increasing alarm that the voices calling for co-ordinated action by the monetary and fiscal authorities have become louder and more authoritative recently.
According to these voices, the ‘policy mix’ should be improved, and the monetary and fiscal authorities should agree on ‘common standards that define general principles’ guiding policy conduct over time. We note these ideas with concern. If such steps were taken, they would undermine the independence granted to the ECB in pursuing its mandate.