No normalisation in the euro zone

We believe that in the euro zone: There will be no normalisation of the unemployment rate, which will remain high because the structural unemployment rate has increased significantly in the past 10 years; There will be no normalisation of (core) inflation, given the weak response of wage growth to the fall in unemployment and very intense competition which prevents price hikes; and As a consequence, there will be no normalisation of interest rates, given the high level of unemployment and the low level of inflation.