...but challenges remain  Today I will address two current challenges facing European supervisors at the moment: first, the balance of harmonisation, subsidiarity and proportionality, and second, institutional challenges. I have already mentioned the necessity of harmonised supervisory standards.
Separately, businesses may respond to the increase in trend productivity growth by stepping up the pace of their investment in plant and equipment, further boosting the growth in the supply potential of the economy. How does the increase in trend productivity growth play out on the demand side of the economy?