The interest rates in the euro area went up by 0.25 percent "to keep price level and inflation under control". Inflation is actually linked with the growing energy bill. Today Jean-Claude Juncker, president of Europe’s Central Bank, at the end of the ECB executive council taking place in Madrid, announced the increase in the reference rate (it is the third increase in six months), starting from June 15. In this way, the key interest rate achieved 2.75%. However, at the end of the meeting (EU Financial and Economic Affairs Commissioner Joaquin Almunia and the President of the European Group, Jean-Claude Juncker, took part in it), Trichet himself pointed out the "favourable moment for the European economy", which might improve in the second half of 2006. "We have to underline encouraging data relating to export, enterprise efficiency, and limitation of labour cost"; there are also "positive signs on the employment side". Furthermore, according to ECB’s experts, a few "threats" in the trading and productive sector are confirmed. They are connected with oil price rise, "any imbalances on the global level" (new conflicts, especially in the Middle East area), and with the "protectionist attitudes" adopted by some EU countries.
