in line with our definition of price stability. thursday ’ s decision keeps our monetary policy on a longer - term stability - oriented course. the decision and its underlying rationale demonstrate continuity and do not in any way indicate a paradigm change to short term demand management. by doing so, the decision contributes to creating an economic environment in which the considerable growth potential of the euro area can be exploited. those responsible for other policy areas are urged now even more to take the necessary steps to improve longer - term growth prospects for the euro area. a cut in the central bank ’ s rates cannot be a substitute for convincing structural reforms in the economies. that should always be kept in mind in discussions on the stabilisation potential of monetary policy. if monetary policy tries to meet other objectives, the risk of missing the main objective is great. specifically, the eurosystem is sometimes accused by critics of squandering opportunities because of the type of final goal definition selected. that relates, to begin with, to the alleged asymmetry of statistical price rises that are consistent with price stability in the view of the eurosystem. but the assumption of asymmetry is based primarily on a misinterpretation of the quantitative definition. thus, it is quite clear from the formulation chosen that, in the view of the monetary policy makers in the euro area, both a deflation in the sense of a sustained decline in the price level and a rate of monetary erosion of 2 % and more are deemed to be harmful. hence undue importance should not be attached to the fact that the ecb has refrained from formally defining a floor for the objective of price stability. that is due not least to uncertainties with regard to the measurement - error problem posed by the harmonised consumer price index. but the criticism sometimes also applies to the formulation of the stability objective in the shape of a target corridor, rather than a possible orientation towards a single - figure target. if the criticism were warranted in this respect, it would, incidentally, also apply to the swedish central bank, which unlike the practice of inflation targeting in, say, the uk - has likewise formulated its target variable in the shape of a corridor. the starting point of this corridor debate is therefore the fact that - at least in theory - a central bank that gears its policy to a single - figure target, rather than a target corridor for price movements, is likely to take monetary countermeasures earlier if changes occur in the price outlook

in other european countries with higher wage levels. opening up to foreign entrants and international trade as well as lifting entry barriers to various professional jobs should help induce greater competition and reduce the power of local oligopolies. a strengthened competition authority is also a useful tool, and its increased activity is certainly welcome. to sum up greece, as the other eu countries, is facing its domestic problems but also the challenges arising from the unprecedented rapid globalization. developments so far shows that greece is responding successfully by recording the second highest growth rate, over 4 % on average since 1996, in the euroarea and more than twice as high as the euroarea average. however, the continuation of this successful record requires sustained efforts towards budget consolidation and simplifying bureaucracy. indeed, provided policies remain focused on promoting the necessary structural reforms and that there are no disorderly upheavals on the international front, the greek economy should continue to perform well.