Strengthening euro area longer-term growth potential and reducing vulnerabilities requires decisive contributions from other policy areas. Implementing growth-enhancing structural reforms and strengthening the institutional architecture of Economic and Monetary Union are essential to support the resilience of the euro area on a lasting basis. Before turning to price dynamics and monetary policy, let me say a bit more about the latest economic developments.
Real GDP in the euro area has expanded for 17 consecutive quarters, growing by 2.3% year on year during the second quarter of 2017, according to Eurostat – a rate that surpassed our projection at the start of the year.