However, investors will not be fully confident in the euro area unless they believe that banks can fail without causing financial instability. Otherwise, they will expect supervisors to practice forbearance. This is why the SSM needs to be accompanied by a Single Resolution Mechanism.
In October, the global growth projection was revised down to 3 per cent, in November to 2.2 per cent and most recently, in January, to 0.5 per cent. This latter revision was particularly sharp, and if correct would represent the slowest global growth rate since World War II.