The U.S.  BIS central bankers’ speeches  1  economy continues to recover at a moderate pace. The sluggishness in the European economy remains strong mainly due to the effects of fiscal austerity measures. More recently, however, the economy generally stopped deteriorating further as financial markets have regained some stability.
By cutting its main policy rates and introducing additional measures to directly address liquidity and funding constraints in the banking sector, it has bought time to facilitate the structural adjustment of the financial industry. It belongs to governments to continue their efforts to ensure fiscal discipline, restore competitiveness and to remove remaining shortcomings in economic governance at the European level.