Moreover, this scenario of elevated inflation rates remained subject to previously identified upside risks posed by possible further increases in oil prices, a stronger pass-through of past oil price increases, additional rises in administered prices and indirect taxes, and potential second-round effects in wage and price-setting.
We are in agreement with the Commission that the implementation of the Stability and Growth Pact could be further improved, in particular in terms of the analysis of structural imbalances and the strengthening of incentives for sound fiscal policies during good economic times. Clarity and enforceability of the fiscal framework should be enhanced.