• Very useful that governments clarified that Europe will be fully consistent with IMF policy, practices in default mechanism plan
  • Concerned proposed numerical debt benchmark in new fiscal rules not ambitious enough
  • Exceptional circumstances rule weakens effectiveness of new framework

On the economy

  • Inflation contained over medium-term
  • loans to corporations increasing
  • excess fx volatility has adverse impacts on financial, economic stability
  • Flexible forex best; currency war language inappropriate