The EU has made crucial progress recently, with the adoption of a harmonised bank resolution regime (the Bank Recovery and Resolution Directive) and the decision to create a Single Resolution Mechanism (SRM).
Alternatively, consumer spending, which has advanced relatively vigorously, on balance, in recent quarters, might expand more quickly than expected; in that case, economic growth could rebound to a pace above its trend. With the level of resource utilization already elevated, the resulting pressures in labor and product markets could lead to increased inflation over time.