And while not all countries have the space to spend more, all have the opportunity to spend better.12  12 / 14  BIS central bankers' speeches  If fiscal policy preferences contribute to disinflationary concerns – for example, by holding back public investments in education, future technologies and research and development – then they directly counteract the efforts of monetary policy to bring inflation back to levels closer to 2%.
Conclusion Heterogeneity is part of the euro area’s DNA. It is a source of strength, provided our institutions and markets have the instruments and ability to effectively absorb idiosyncratic shocks. Heterogeneous currency unions need a sufficient degree of private and public risk-sharing, and they need economic policymakers doing their part to preserve and nurture cohesion and convergence.