[40]  Chart 23 GDP deflator and contributions (annual percentage changes; percentage points)  Sources: Eurostat and ECB staff calculations.Latest observation: Q2 2019. External factors have also been influential in determining financial conditions in the euro area, which are crucial when deciding on the appropriate monetary stance.
The regime incorporates targets for low inflation and exchange rate stability, a fiscal deficit of no more than 3 percent of GDP, a ceiling on external indebtedness, and a floor for external reserves.