Two weaknesses became particularly apparent during the crises: first, the excessive debt levels of countries in the euro area; second, the heterogeneous economic developments in the individual member states of the monetary union. 3.1 Sound public finances We must therefore begin by ensuring sound public finances.
In order to reap the full benefits of our monetary policy measures, actions in other economic policy areas are necessary to strengthen long-term growth and resilience in the euro area. The euro area’s ongoing economic expansion is being largely driven by domestic demand, with both private consumption and investment contributing to growth. Real GDP rose by 1.7% in 2016.