Regarding the functioning of the euro area economy, the success obtained in terms of job creation needs to be complemented and consolidated by continuing to implement courageous structural reforms aiming at increasing the flexibility of all markets, at supporting innovative environments and therefore augmenting the growth potential of Europe and strengthening the resilience of our economy.
“Baby Bear is inflation, whose sudden growth in some countries” has spooked the global market and sparked the recent sell-off on the expectation that higher interest rates could slow corporate growth and consumer spending. The important question is whether recent significant market corrections were short-term in nature or whether they were the “sort of overdue awakening to risk” that many economists have been predicting.