In my introduction, I will focus on the challenges the Economic and Monetary Union faces over the medium term. Let me start by saying that the concept of the ‘medium term’ is an intriguing one. From a political perspective the medium term is a place where one kicks the proverbial can to.
From a monetary policy perspective, on the other hand, problems in the medium term would typically be cause for immediate action. This asymmetry in policy reactions might be at the core of the institutional frictions facing the Economic and Monetary Union since the global financial crisis.