The Commission projects the euro area fiscal deficit to fall below 3% of GDP this year – less than half the peak reached in 2009.
Under pressure from supervisors, euro area large and complex banking groups have continued to improve their capital positions, with the median core Tier 1 ratio reaching 11.1% in the first quarter of 2013, up from 9.6% at the end of 2011. But there is still a long way to go before the “singleness” of the euro area financial market is restored.