In managing the capital account through control framework, there could be a prioritisation of capital flows - in terms of their desirability or otherwise. Thus, for example, a higher preference could be to Foreign Direct investment and long-term debt compared to portfolio flows and short-term debt.
Today, high debt levels are still holding back the recovery and non-performing loans weigh heavily on the balance sheets of many of our banks. Headwinds have also emerged – this time from the external side – as a result of weakening global economic activity. Since 2014, net exports have made practically no contribution to euro area growth.