Regulatory perimeter issues are being addressed by putting in place a regulatory framework for the shadow banking system. Another set of reforms are aimed at addressing issues in the OTC derivatives markets by ensuring that the transactions in these markets are reported, centrally cleared and, where possible, settled through a central counterparty.
The contribution of labour income to household income growth in the first half of this year was the strongest in a decade. And consumer confidence remains above its long-run average in the euro area and across most economies.