One factor supporting continued growth, particularly in private consumption, is the gradual improvement in labour market conditions. Moreover, the lowest short-term interest rates in the euro area currently stand at 3.3%, and several countries have cut interest rates towards this level recently as part of the process towards interest rate convergence.
It is essential that the financial industry does a good job in taking on this challenge if the switch to sustainable forms of economic activity is to be facilitated and the risks to the household sector (the ultimate owner of financial assets) are to be minimised.