Our financial sector finances large chunks of the real estate sector. When cash flows dry up, that will jeopardize the value of these loans. So how big is the problem? We found that on average 46% of bank loans to commercial real estate parties, has an energy label of less than C, representing some 6 bn euros.
The combination of ongoing deleveraging by banks and households, increased fiscal austerity and declining confidence is expected to restrain growth across the advanced economies.   The Bank now expects that the euro area – where these dynamics are most acute – will experience a brief recession.