That is the reason why when we observe a) that unit labour costs – which is the major cost parameter for inflation – are augmenting in a country, year after year, and that they are above the average of the euro area, and b) that the level of cost competitiveness of the economy concerned is starting to create difficulties, for instance that the external account is deteriorating vis-à-vis the average of the euro area, then it is time, in our opinion, to take appropriate measures to bring the unit labour costs below the average and catch up on the lost competitiveness.
5) At Governing Council meetings, have you discussed the situation in countries like Portugal and Italy – with high levels of debt and very low growth – or the Netherlands and Finland – with low inflation? Answer: Just like the Federal Reserve, we have to look at the average of our vast continent.