It is my contention that the European economy is gripped by problems that are more serious than bank deleveraging and also of greater consequence, because it is not immediately clear how to address them.
I will argue that even when bank balance sheets have been fully repaired, structural problems related to the slowdown in emerging markets,  BIS central bankers’ speeches  1  to weak domestic demand, and to structural phenomena such as the ageing population will continue to hamper European growth prospects.