The banks that emerge from that process may well be smaller but better prepared for the new environment. This should allow for a more focused and consolidated banking sector. We need to ensure that the banking system that emerges is one that is there to serve the future needs of the economy.
The IMF projects that the euro area will be almost in primary balance this year, with an average debt level just over 90% of GDP. In terms of fiscal consolidation, this puts the euro area significantly ahead of some other advanced economies. BIS central bankers’ speeches  1  How to deal with intra-euro area competitiveness imbalances?