However, a self-sustaining recovery in domestic demand is unlikely to gain momentum for some time, since production is expected to be virtually unchanged for the immediate future while downward pressures such as excessive labor input and debt persist. In addition, as for the outlook for the external environment, there still remains uncertainty about, among other things, the recovery of the U.S. economy.
Only a banking union based on all these pillars will create the conditions for economic agents to make decisions based not on expectations about the sovereign risk of the country where the banks are headquartered, but according to the risk profile of the bank itself, irrespective of location.