Otherwise, the possible existence of downward rigidities in prices and wages in the euro area could give rise to excessive costs in countries and regions with lower than average inflation over the longer term10 and, in extreme cases, deflationary trends could even take hold at a local level.
Finalised Basel III standard must be implemented proportionately For the same reason – that is, to strengthen financial stability – it is very important that we implement the recently finalised Basel III package fully in the EU. After all, that’s no less than we expect of the US and the other member countries of the Basel Committee.