The high degree of synchronisation in the business cycles of euro area countries is a feature unique to the euro area. This suggests that EU integration and, more recently, the launch of the euro – rather than global forces – have led to smaller differences in output gaps among euro area countries.
All in all – as our talks with the affected institutions, amongst other things, have shown us – I see banks and supervisors alike as being on the right track in terms of shaping Brexit-induced change without any major frictions or risks to financial stability.