Moreover, their export industry is expected to lose competitiveness. Inflation dispersion and the role of policy With view on inflation dispersion, for a central banker, the natural question of the role of monetary policy arises. Monetary policy in the euro area is necessarily uniform; therefore it cannot exert a direct influence on inflation differentials.
The present system of banking supervision in Europe essentially rests on three pillars: •  harmonisation of the regulations;  •  national regulatory competence; and  •  bilateral and multilateral cooperation. Bilateral cooperation is based on memoranda of understanding between the supervisory bodies. Added to this, at the multilateral level there is the Banking Supervision Committee at the ECB.