Can you be more specific, Mr President? Which countries in the euro area need to do more? Draghi: All of them. Including Germany? I said all of them, some more than others. I welcome the German government’s announcement of additional public investment in infrastructure. Every country has its own agenda. Those governments that have already implemented reforms are now reaping the benefits.
These and other shifts in underwriting standards, coupled with slowing house price appreciation or even depreciation, are the most likely explanation for the pronounced rise we have seen in defaults occurring within a few months of origination – before most borrowers would have experienced significant changes in their payment obligations or in their financial situations.