euro area. The deflation risk persists and hysteresis effects are likely to have long-lasting negative impacts on potential … output. Monetary policy is stabilizing the euro area but is currently unable on its own to initiate an upswing. An … insufficient. The European fiscal rules provide too little fiscal space for euro countries and should be reformed, for example in …

pose a huge challenge for the EU's member states and in particular the euro area countries, because of the strict fiscal …