However, these reset adjustments are expected to be gradual, and only a modest number of outstanding mortgages are expected to reset during 2006 and 2007. To date, consumers appear to be managing changes in their mortgage payments quite well. One area of potential concern relates to the portion of home sales accounted for by investors, as opposed to owner-occupants.
In order to reach its full potential, the European Union’s Recovery and Resilience Facility will need to be firmly rooted in sound structural policies conceived and implemented at the national level. Well-designed structural policies could contribute to a faster, stronger and more uniform recovery from the crisis, thereby supporting the effectiveness of monetary policy in the euro area.