The ECB is right to orientate its policy towards price stability at the mid-term and not to react to short-term price movements. Calls for an early exit of the ECB’s expansive policy are misplaced and premature. The price dynamics of the past two months mainly reflect a normalization of energy prices. The euro area economy remains weak and unemployment rates are too high to allow for a quick return to price stability and for an end to the expansive monetary policy. It is good news that the recovery of the eurozone economy is progressing well and that reforms in Southern Europe are starting to pay off. Political uncertainty is the biggest threat to the euro area economy and to the ECB’s monetary policy.