I realize that I formulated the typical nuanced answer you can expect from an economist: “real estate taxation and macroprudential policy are both substitutes and complements”. I hope for everyone here in the room that the panelists in the next session – where this question will be discussed more extensively – will be a bit less nuanced so we can have a lively debate.
These include, to varying degrees across countries and banks, cost inefficiencies, excess capacity and a lack of income diversification, while NPLs still remain high in some countries. In this context, a comprehensive action plan for dealing with legacy asset quality issues has been adopted by the Council of the European Union and is now being followed up by EU and national authorities.