Closer to home, the euro area recovery has gained momentum, with growth becoming more broadly based and sustained in the first-half of this year. While external trade continues to provide significant impetus to euro area growth, there are now also signs of an improvement in domestic demand. Business confidence has strengthened significantly and we have seen a welcome recovery in investment.
I think that the higher minimum paid up capital requirement will also stimulate a degree of consolidation in the banking industry in Uganda, with fewer but larger commercial banks. I will return to this issue when I discuss the implications of the East African common market.