Finally, I shall address the main fiscal policy challenges and in particular the implications of population ageing in the euro area for the sustainability of pension and healthcare systems. First of all, well-functioning labour markets set the right incentives for households which take decisions concerning their participation in the production process by entering the labour market and actively searching for a job.
If by any chance the functioning of the financial system is significantly impaired due to a financial crisis, it will be certain to see an adverse impact on price stability through a plunge in economic activity. In any event, central banks cannot be unconcerned about the stability of the financial system.