[ECB Executive Board Member Schnabel: Inflation Risks in the Eurozone Tilt Upward] ECB Executive Board Member Schnabel stated that the combination of economic recovery and massive government spending on military and infrastructure is causing inflation risks in the Eurozone to tilt upward. She believes the economic output gap is narrowing, and fiscal stimulus will significantly boost economic growth. Schnabel said interest rates are at an 'absolutely' appropriate level and emphasized the need to be vigilant about rising food costs and the 'stickiness' of inflation in the services sector. She expressed no concern over inflation slightly deviating from the 2% target and downplayed potential downside risks.