However, implementation of the Pact was rather weak in EMU’s early years. Tensions emerged already in the early 2000s, and in November 2003, when action should have been  4  BIS central bankers’ speeches  taken against both France and Germany, the ECOFIN Council decided not to act, overruling the European Commission.
In fact, downside risks to the outlook stem from the threat of increased protectionism, rising oil prices and its impact on inflation and global growth, as well as very elevated levels of global debt. Moreover, the risk of persistent heightened financial market volatility warrants monitoring.