The banks protect themselves as well by making better provisions. What does it mean that some banks are withdrawing from the European market and focusing on their domestic market? That there’s no European banking system after all? I am also concerned about that, because we in the monetary union need cross-border banks which are subject to common supervisory and resolution rules.
Household spending has continued to advance, but recent data indicate a somewhat slower rate of growth in the second quarter. Although declines in energy prices are now providing some support to consumers’ purchasing power, households remain concerned about their employment and income prospects and their overall level of confidence remains relatively low. We have seen modest signs of improvement in housing.