Of course, while public debt levels offer a useful indicator of the fiscal space governments have available to fight the crisis, they are a narrow indicator of countries’ overall resilience. This also depends on other factors, such as growth potential and household and corporate debt levels. These also differ widely across the euro area.
Looking at banks, we know that, in terms of capital buffers, banks are in a better position than in 2008. Yet, the banking sector remains heterogeneous. Non-performing loans as a share of total loans outstanding, for instance, still vary significantly across countries.