Compared with the June 2014 Eurosystem staff macroeconomic projections, the projections for real GDP growth for 2014 and 2015 have been revised downwards and the projection for 2016 has been revised upwards. The Governing Council sees the risks surrounding the economic outlook for the euro area on the downside.
As far as I can see, the government’s acquisition of ailing banks has had the desired effect, i.e. banking transactions with traditional customers have, as far as possible, continued although share capital and other liable capital has been lost. The Financial Stability Company should still be empowered to make acquisitions – but without any other guarantee than the statutory deposit guarantee.