In terms of efficiency, it’s among the best in the euro area. These are the strengths. As for the weaknesses, many European banks – and not just Spanish banks – must do their homework, and think about how to cut costs to deal with the challenges of 2016 and beyond.
Given that many countries face similar challenges, I broaden my horizon beyond Ireland once again. The need to transition to a low, or even carbon-free, economic structure will likely require substantial public investment. This is due, in part, to the substantial uncertainty inherent in less-developed green technologies. This could limit private investment, despite increasing awareness of the substantial economic costs of failing to act.