Can the ECB look at the euro-zone average or must it look at the most fragile euro-zone countries?
In principle, the ECB does not take account of the individual situations of euro-zone countries and reacts only to trends at the euro-zone level (growth, inflation, financial imbalances). But the ECB clearly seems to have added to its list of objectives the preservation of the integrity of the euro zone and the prevention of crises that could cause the zone to break up. This forces it to react to the problems of the most fragile euro-zone countries, as these countries could be hit by a crisis that threaten ed the existence of the euro zone, like the one from 2010. We therefore believe that the ECB currently looks at the most fragile euro-zone countries (to preserve their fiscal solvency, boost their growth and prop up their banks) and not just at the euro-zone average.