Interest rates in the major economies are expected to remain low for several years, and this will affect Israel’s monetary policy. The slowdown has a direct impact on the demand for Israel’s exports. The situation in Europe is likely to have a negative effect on financial stability there, and hence on global financial stability too.
4. Making Europe more prosperous  The wait-and-see stance adopted by many German enterprises is motivated not least by the modest economic outlook for the euro area. Boosting growth in the euro area, then, needs to be the top priority. This would not only help the crisis countries to overcome their very difficult economic situation but also benefit all the other member states.