While monetary policy will continue to ensure price stability in the euro area as a whole and cannot address inflation rates in individual countries, relative competitiveness adjustments can and need to occur at the country level. These adjustments need to be driven by national policies.
In February, a smaller share of businesses indicated that economic uncertainty was weighing on their investment plans than was the case in August last year. Labour market outcomes have also improved. The increases in job openings and employment growth observed since late last year have been particularly pronounced in industries that were most affected by COVID-19 restrictions.