The European Central Bank's Annual Report, published on Monday, shows that despite extraordinary monetary and fiscal stimulus measures, output in the eurozone declined by 4% last year. Average annual inflation stood at 0.3% overall.

The report explains the Governing Council’s decision to lower the rate on the main refinancing operations by a further 150 basis points in early 2009, to 1%, and the effects of liquidity provisions to the euro-area banking system, which helped facilitate access to