4/8  BIS central bankers' speeches  Indeed, simulation exercises conducted by the Bundesbank reveal that the tax cuts passed in the United States will probably push up government debt and the current account deficit considerably.4  6 The danger of protectionism I would like to warn against thinking of tariffs as a cure for the current account deficit.
Euro area non-financial corporate sector Concentrating on the euro area non-financial corporate sector, lower sales volumes and profit margins have caused a substantial weakening of corporate profitability which is expected to persist in 2010. Firms in the euro area entered the economic downturn with a relatively high leverage ratio.