Euro area in recovery but medium-term outlook weak Collective action needed for further integration; muddling through carries heavy risks Priorities: more EU fiscal support, reforms to raise growth potential, a common deposit insurance, improve bank balance sheets. Recovery in the euro area has strengthened, but the medium-term outlook remains weak and is endangered by a lack of collective action to address common challenges. Read more...
Financial system resilient, long-standing issues remain Low profitability of banks, insurers exacerbated by low interest rates German, European authorities should ensure new European financial architecture effective in practice. The financial system of Germany, home to systemically important financial institutions, has been bolstered by EU-wide and global reforms in the financial sector. Read more...
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