I will like first to discuss the current economic and financial situation in the euro area and prospects for the future, and then I will focus on some of the conditions which need to be in place to ensure sustainable growth, including the role of fiscal policy. Current economic situation and future prospects Let me start by describing the current economic and financial situation.
The latest data releases confirm that the economic recovery in the euro area is continuing. Real GDP grew by 0.5% quarter on quarter in the second quarter of this year, having recorded a 0.6% increase in the first quarter. Moreover, the latest indicators of output and demand remain consistent with ongoing growth in real activity.