A failure of a systemically important bank is likely to cause significant disruption to the wider financial system and to economic activity. This is why, up until now, these institutions can well count on a public bail-out. The adverse effects of this implicit state guarantee have been widely discussed.
Economic growth outside the euro area continues to be strong and should promote export growth. On the domestic side, investment should benefit from the positive global environment as well as from the favourable financing conditions. Improvements in corporate efficiency and higher profits are also supporting business investment.