On 7 June, the euro area finance ministers agreed on the spring 2010 orientations for fiscal policies in euro area countries. We welcome the commitment to take additional measures, where needed, in order to ensure the achievement of the budgetary targets for 2010 and beyond. Will these consolidation efforts have a negative impact on growth?
The pace of improvement in corporate profits seems to be slowing significantly as exports and production are recently declining, and business sentiment of firms are worsening particularly in the manufacturing industries. Income conditions of households have not yet deteriorated but the effects of the decline in production are starting to be observed in new job offers and overtime working hours.