That is why upholding legislation to make the financial sector more resilient – in particular stronger bank capital – is such an important complement to stronger market regulation. Better regulated markets may mean that banks bear less risk, but it does not mean they should not be strongly capitalised. 3.
Whereas the appreciation of the euro over recent months may contribute to dampening export growth to some extent, the price competitiveness of euro area companies remains favourable in a medium-term perspective and export growth should benefit from the expected recovery of the world economy. Therefore, recent exchange rate movements should not fundamentally affect the main scenario for the economic outlook.