Translation of "inflation bien enracinée dans l'économie " (French → English) :

Notes that fiscal and monetary policies are no substitute for structural reform, which must address the underlying weaknesses of the European economy – sharply growing debts and deficits, an ageing population, the probability of a surge in inflation or a process of deflation, the highly probable new surge in inflation, risks to industries generated by climate-change policies, especially owing to uncertainty about new targets and standards, low productivity and lack of competitiveness; calls for higher efficiency in using public money, at both European and national levels; considers that the differences in the timing and intensity of th ...[+++]e crisis, as well as the different ex-ante fiscal and monetary positions of the individual Member States, should be taken into account when adopting coordinated policies and targets; believes that these efforts should lead to faster real convergence among national economies;

178. Notes that fiscal and monetary policies are no substitute for structural reform, which must address the underlying weaknesses of the European economy – sharply growing debts and deficits, an ageing population, the probability of a surge in inflation or a process of deflation, the highly probable new surge in inflation, risks to industries generated by climate-change policies, especially owing to uncertainty about new targets and standards, low productivity and lack of competitiveness; calls for higher efficiency in using public money, at both European and national levels; considers that the differences in the timing and intensity ...[+++]of the crisis, as well as the different ex-ante fiscal and monetary positions of the individual Member States, should be taken into account when adopting coordinated policies and targets; believes that these efforts should lead to faster real convergence among national economies;

2006 was a remarkable year, with growth driven by domestic demand thanks to an improved labour market situation (3 million jobs created of which 2 million in the euro area). This allowed the EU economy to weather energy prices that reached record levels in the summer, tighter monetary conditions and a slowdown in the United States. Such developments bode well for 2007. On the inflation front, while higher ...[+++] energy costs pushed up consumer prices to 2.2% last year in both the EU and the euro area, inflation is expected to decline to 1.8% in 2007 in the euro area (2.0% in the EU) on the back of lower oil prices and a relatively limited impact of the German VAT hike.

Perhaps you ought to begin consultations so that, in future, people have access to an assessment of inflation that is more in line with the needs of an economy that has to assume transition costs. These must not become the responsibility of future generations but, rather, be to their advantage, since, on the basis of a boost in growth, future generations will be able to fund the repayment of this inflation.

I accept, of course, that rises in prices and labour prices and labour costs can impact on inflation, but clearly in our Member State economies, where increasingly wage rates are negotiated through national agreements and are linked to productivity, and have all kinds of other factors built into any increases that employees get, the likelihood of labour costs being the driving force behind inflation to my mind is untrue.

In spite of the fact that economy of the Community has been largely somewhat shielded from the inflationary effects of the oil price increase by the appreciation of its currencies, inflation is still accelerating and might reach 5 1/4 % in 1991, two points more than the rate of 1987.