It is impossible to do everything in the euro zone: Investing in the ecological transition, improving healthcare and education systems, boosting consumption, stabilising the public debt ratio and bringing inflation back to 2%

The euro zone's economic policy has multiple objectives: Investing in the ecological transition; Improving healthcare and education systems; Boosting purchasing power and consumption; Stabilising the public debt ratio; Bringing inflation back to 2%. These multiple objectives are incompatible: Investing in the ecological transition and increasing spending on healthcare and education will require an increase in public spending that is incompatible with stabilising the public debt ratio if monetary policy remains restrictive; Similarly, it is not possible to invest in the ecological transition and boost consumption at the same time, within the framework of the usual fiscal and monetary rules. So it will be necessary to set priorities. If these priorities are to make the investments needed for the ecological transition and to improve healthcare and education systems, it will not be possible to boost purchasing power and fiscal policy will have to be given degrees of freedom, which can be achieved by raising the ECB's inflation target.