In line with our monetary policy strategy, we take the view that the sustained underlying strength of monetary and credit expansion in the euro area over the past few years has created upside risks to price stability. Over recent quarters, these risks appear to have become manifest as inflation has trended upwards.
The extension and deepening of the EU’s internal market clearly remains a priority as regards further financial market integration and the implementation of the Services Directive. The economic importance of services suggests that improvements in European living standards will crucially depend on productivity improvements in this area.