In addition, there were fears at the time that the introduction of the Goods and Services Tax could rekindle inflationary pressures. But inflation quickly fell into line following the announcement of the targets, and has averaged very close to 2 per cent since the end of 1991. Since then, we have seen that the economy functions better at a low rate of inflation.
They must ensure a well-functioning euro area, by good management aimed at enhanced flexibility, integrated labour, product and financial markets and disciplined fiscal policies. This leads me to the two main issues I would like to address this evening. First, I would like to share with you some stylised facts on the features of the euro area’s economic integration process.