Inflation has benefited from wage moderation and the appreciation of the euro; it has also been influenced by the weakness of demand. Looking ahead, the rise in oil prices and the performance of the euro could have a negative impact. Household spending is being held down by uncertainty about the outlook for income and employment; the propensity to save has been rising since 2000.
A privately financed resolution fund is a further line of defence. All banks supervised directly by the ECB would have to contribute to this joint European resolution fund, which would supersede national regimes in the medium term. This fund should also be able to require additional payments from member banks.