This has translated into current account deficits that are on average more than five percentage points of GDP lower than they were then;  •  Thanks to the ECB’s non-standard measures, which have given European banks the breathing space needed to implement their restructuring plans in an orderly fashion, those banks have substantially increased their capital buffers.
There has been no disorderly deleveraging, which was perceived as a major concern at the end of last year. This process of rebalancing within the euro area is coupled with sluggish growth and slower euro area import growth, which is arguably not without cyclical implications for the rest of the world. In particular, trade between the euro area and China has recently declined.