But demand has remained weak, including in the biggest euro area economies. How does all this affect the ECB? With rates of inflation that are too low month after month, our comfort zone for reaching the target of price inflation close to 2% over the medium term has shrunk. Faced with this risk, we were obliged to act as we did in June.
History tells us that the more unbalanced an economy is, the lower its level of growth and the greater its vulnerability to negative external shocks. The correction of economic imbalances is therefore essential for preventing future crises and for achieving sustainable growth. Against this backdrop, I think that this conference focused on the issue of economic rebalancing is both deeply meaningful and timely.