Negotiations are continuing between Italian and European authorities for precautionary public recapitalization – an instrument envisaged by the Bank Recovery and Resolution Directive – of Banca Monte Paschi di Siena, Banca Popolare di Vicenza and Veneto Banca.
While euro area consumer and business confidence indicators declined in September, mainly reflecting the financial market correction, they remain above their historical averages and continue to point to ongoing sustained growth during the second half of the year. Available forecasts for 2008 confirm the Governing Council’s main scenario of real GDP growing at around trend potential.