Bold and effective implementation of reforms is not just in the interest of the individual countries, it is also key for strengthening the resilience and ensuring the smooth functioning of the Economic and Monetary Union and for supporting growth at the global level. The implementation of the banking union has been a pivotal step in the reform of Europe’s financial sector.
The new environment for banks, reflected in the better health of the banking system, supports the transmission of our monetary policy and thereby creates more favourable conditions for the real economy, which could in turn support the private sector’s efforts to address debt overhangs and impaired corporate and bank balance sheets.