Mean squared gap for inflation and resource utilisation forecasts Average values of squared deviations during the forecast period 10.0 9.0 Higher repo rate  8.0  Resource utilisation  Main scenario  7.0 6.0  Lower repo rate  5.0 4.0 3.0 2.0 1.0 0.0 0.0  0.1  0.2  0.3  0.4  0.5  0.6  0.7  0.8  Inflation  Note. Resource utilisation is measured as the deviation in GDP from the HP trend and the inflation deviation as the CPIF’s deviation from the inflation target. Source: The Riksbank  Figure 14. Yield curves Per cent 4  4 Yield curve for the repo-rate path Yield curve for government bonds  3  3  2  2  1  1  0  0 11  12  13  14  15  16  Note. The yield curve for the repo-rate path is calculated using the expectations hypothesis and the government bonds curve is a zero coupon curve Sources: Reuters and the Riksbank  BIS central bankers’ speeches  17
Although such a euro area stance is prevailing, the contribution of individual Member States to the aggregate outcome is suboptimal. Some of them need to take additional measures to ensure compliance with the fiscal rules, while others have scope to use available fiscal space. In addition, all euro area countries should strive for a more growth-friendly composition of fiscal policies by prioritising public investment and reducing the tax burden on labour. The current political and economic momentum in Europe also provides an opportunity to strengthen our Economic and Monetary Union (EMU). Further integration needs to be achieved 2/3  BIS central bankers' speeches  above all by implementing what has been agreed and by completing the common projects we have started. This includes completing the banking union and building a capital markets union. A more complete EMU, with further steps towards a deeper financial, fiscal and economic union, will be the foundation for a stable, flourishing and resilient euro area economy. That is the best contribution which Europe can make to global economic growth and financial stability. By delivering on its mandate, the ECB will continue to play its part in this endeavour. 3/3  BIS central bankers' speeches