In the coming weeks the European Commission and the Single Supervisory Mechanism will finalize their proposals for writing down non-performing loans over time (calendar provisioning). In its proposal the Commission suggests introducing minimum, or Pillar 1, requirements that all EU banks will have to meet.
With respect to labor market conditions, the unemployment rate has remained at a high level, and the ratio of job offers to job applications has recently eased. In October 1997, overtime working hours fell below the previous year’s level for the first time since August 1994, and the growth in employment and nominal wages has recently been slowing gradually, reflecting weak production.