The problem in supplementing these targets with an exchange-rate target is that the need for internal stabilisation may easily conflict with the exchange-rate target. Spain formally continued its inflation targeting up to its EMU entry. This was, however, also a period in which the interest-rate spread to Germany progressively narrowed, and never widened, while fiscal policy was put in place.
Meeting the convergence criteria was the central aim of the overall economic policy - irrespective of how monetary policy was classified. Theoretically, inflation targeting in ERM II presents an additional complication in that the impact of the national interest rate diminishes relative to domestic activity and future inflation rates as the date of EMU accession approaches.