Of course, effective monitoring requires adherence by members to the policy framework, it requires peer pressure and consequences to deal with deviant behaviour, and it requires reliable statistics. Europe’s economy: the current challenges and the way ahead Let me come to the third part of my remarks: what is expected of national governments and of European Union institutions?
So, we could equally say: “Interest rates that fall, must rise again.” But for now, the euro area is still in the midst of a protracted spell of very low interest rates. It goes without saying that this low-interest-rate environment is making itself felt on banks – particularly on those whose business models are very reliant on interest income.