In the long run, however, I see a separation of both tasks as the better choice. Are the banks in the euro area stable enough to issue sufficient credit to businesses? The vast majority of European banks have enough capital and liquidity to enable them to expand their lending activities. But that in itself does not suffice.
First, the decline in demand following the consumption tax hike has been somewhat protracted in durable consumer goods including automobiles, as well as in housing investment. Second, crude oil prices have declined substantially after the summer.