12. Stresses the risks to growth that an increase in interest rates would pose, in the context of a fragile recovery, and points to the risks associated with changes in the euro exchange rate and with oil prices, these being factors which played a part in the weak growth seen in 2005, owing to their impact on household purchasing power; calls for reflection about the feasibility of and opportunities for the denomination of oil and oil derivatives in the euro zone in euros rather than of dollars;

9. Recalls that the Stability and Growth Pact is an essential element of the euro area's credibility and that attainment of a balanced fiscal position is a prerequisite for the full functioning of automatic stabilisers; recalls also that the correct policy mix between monetary and fiscal policy presupposes sound public finances, and that allowing national budgets to "breathe" in connection with the pace of economic activity is fully understandable as long as the budget is balanced over an entire economic cycle; calls on Member States which have not yet reached a balanced fiscal position to avoid any dramatic drift in their current budg ...[+++]etary position;