Several initiatives have been taken to strengthen European banks: from the definition and application of common rules, to the consolidation of truly European  authorities. The Banking Union is a vital element of this strengthening process. The Single Supervisory Mechanism, which was completed in an extraordinarily short  period of time, entails very extensive and deep integration of national authorities.
This has arisen from a sharper than expected adjustment in the housing sector alongside a deterioration in the international environment. Growth prospects for the next 18 months or so are now significantly less favourable and we will be revising our forecasts to reflect this.