Third, it is vital that we address issues going under the seemingly-innocuous triple acronyms of LCFI, SIFI, and TBTF. Telling ourselves “It won’t happen here!” won’t do. We must come to grips with LCFI’s, large complex financial institutions, especially those that are SIFI’s, systemically important financial institutions, and may qualify as TBTF, or too big to fail.
Economic growth outside the euro area continues to be robust overall, even if subject to temporary fluctuations, and should continue to support euro area export growth. On the domestic side, investment should benefit from the positive global environment and the very favourable financing conditions. Improvements in corporate efficiency and higher profits are also supporting business investment.