Euro area bank valuations remain low when compared with those of their peers around the world, particularly those of US banks. Looking beyond the challenges presented by the coronavirus pandemic, addressing pre-existing structural weaknesses remains crucial to sustainably improve profitability. The relatively lower valuations of euro area banks predate the pandemic, even if they have been accentuated by recent developments.
We need to reduce the relative excess of lesser-skilled workers and enhance the number of skilled workers by expediting the acquisition of skills by all students, both through formal education and on-the-job training. Although the long-run challenges confronting the U.S. economy are significant, I fully anticipate that they will ultimately be met and resolved.