Comparing external demand with domestic demand, while exports have generally been picking up at a somewhat slower pace, domestic demand, notably private consumption and public investment, has been firm. Compared with what was anticipated at the time of the Outlook Report six months ago, external demand has been somewhat weaker and domestic demand has been somewhat stronger.
Equity markets are particularly well-suited for mobilising and directing financing towards riskier and more innovative projects.4 In parallel to the ambitious implementation of the European Commission’s capital markets union action plan, we need to make urgent progress on the EU’s sustainable finance agenda to build a green capital markets union.