That is, they can choose to delay some or all of the effect of the cash flow channel of monetary policy on their spending for a time. Whether they will do this, however, is uncertain.
The severity of the euro crisis galvanized the EU into action and, under pressure, some very important achievements were made. I think that the unification of banking supervision under the auspices of the ECB and the creation of the single resolution mechanism are enormous steps forward. But three essential things are still lacking from a well-balanced reconstruction of the euro area financial system.