The easing of tensions in the euro area reflects the progress made in European Union governance, the resolute steering of monetary policy towards the maintenance of accommodative conditions, and the correction of national imbalances, with significant progress being made in the countries hardest hit by the crisis. Nevertheless, the risks remain high.
Ten-year euro area government bond yields are currently at levels significantly below 4%. Furthermore, financial deepening is evident in the rapid growth of new market segments, such as the corporate bond market, reinforcing the access of investors to funds and thereby contributing greatly to economic growth.