The mildly expansionary euro area fiscal stance and the operation of automatic stabilisers are also providing support to economic activity. Growth-friendly public finances based on sustainable fiscal plans and a sound composition of taxes and expenditures are essential for macroeconomic stabilisation and lasting economic prosperity.
In order to reap the full benefits from our monetary policy measures, other policy areas must contribute more decisively to raising the longer-term growth potential and reducing vulnerabilities. 1 I thank Danielle Kedan for her support in preparing this speech.