However, after the decline of the past four years, a renewed increase in the euro area aggregate fiscal deficit ratio is projected for 2008. There is a clear risk that some countries will not comply with the provisions of the preventive arm of the Stability and Growth Pact.
In what follows, I will explain these two issues in more detail. Inflation measurement and owner-occupied housing costs The Treaty-mandated primary objective of the ECB’s monetary policy is to maintain price stability. This means making sure that inflation – the rate at which the prices for goods and services change over time – remains low, stable and predictable.