In a brief span of time major reform projects have been completed and new initiatives launched that can greatly strengthen the EU’s economic governance. This is not the place to go into the details of what is being done in the “building site”. But I would like to convey the importance of the changes to the institutional framework.
Its components focus on raising inflation expectations, increasing asset values and pushing up growth in aggregate demand, and, as stated in its September 2010 press release, employment. While I agree these are worthy goals, I am concerned that maintaining a crisisoriented policy as the tool to achieve them significantly changes the economic risks.