Nevertheless, since the economic imbalance in the euro area that lies at the root of the crisis has not yet been resolved, due attention should continue to be paid to the possibility that some events might cause a crisis to recur. I see the risks to the outlook for the European economy as still tilted sharply to the downside. 3.
These risks include, on the external side, possible further increases in energy and food prices beyond those foreseen thus far, and, on the domestic side, the risk of broad-based second-round effects in wage and price setting.