Indeed, financial crises have often interrupted the otherwise steady growth trends of many EMEs. 2  BIS central bankers’ speeches  Advanced countries of course also face significant risks to sustainable growth. Their high and rising public debts undermine not only financial stability but also growth. Evidence suggests that public debt above 85–90 percent of GDP tends to affect growth negatively.
High longterm unemployment will lead to permanent losses of productive human capital. More recently, rising unemployment and income inequality have compromised social cohesion in these countries. Last but not least, the euro area has and will remain vulnerable to growing structural imbalances between its core members and its periphery.