Where legislative progress is for the moment not possible at the EU level, we need determined and concerted action at the national level to lower cross-border barriers.
This reflects a combination of modest growth in consumption, the beginnings of fiscal drag, solid business investment in equipment and software, and relatively strong export growth. These last two factors will of course be importantly influenced by global developments. At this stage, the Bank of Canada does not expect a recession in the United States, although the risk has clearly risen.