The Governing Council is also very transparent about its assessment of the current economic situation and the risks to price stability involved. There are no ambiguities as to how monetary policy would respond to possible changes in the economic environment and in the balance of risks to price stability.
At the same time, it allows an appropriate medium-term orientation of fiscal policy which fosters confidence and thereby growth. In order to fully reap the benefits of this framework, it is important that countries respect its objectives and implement appropriate consolidation plans where needed.