Fortunately, there is already evidence that the Delta surge has begun to wane and, with the reopening of schools (and the expectation that they will remain open in most areas), that the worst effects of Delta, medically and economically, may be behind us. Likewise, fears that Delta would lead health officials to mandate more severe business restrictions have not materialized.
It is important to bear in mind that calling attention to the potential sources of risk and vulnerability to financial stability does not aim at identifying the main - or most likely - future scenario for the euro area economy.