While the adjustment in equity markets has been limited, a more pervasive and persistent re-assessment of future prospects or a shift in the distribution of risks would be disruptive through a variety of mechanisms.
For the euro area, it remains important to improve the resilience of the monetary union, through appropriate national macroeconomic policies, the completion of banking union and making progress in capital markets union. The European Union is currently considering a further range of deepening measures, which will be discussed at the June European Council.