Unemployment in the advanced economies has on average more or less doubled, with both Spain and Greece reporting rates of just over 25 per cent. The sovereign debt crisis in Europe remains unresolved, and continued fiscal austerity continues to retard growth prospects.
We learnt the hard way how quickly and severely financial sector problems in one country can spread to another. We also experienced the severity of negative feedback loops between sovereigns and banks. National supervisors have been heavily challenged by crossborder banking and financial activities.