This Special Feature examines in considerable detail the potential implications of further integration in European mortgage markets for the monetary policy transmission mechanism  4  BIS Review 53/2008  and for financial stability.
A strengthened financial sector, an accommodative macroeconomic policy setting, sound fiscal policies and a determination by euro area governments to pursue structural reforms should allow the euro area to embark on a sustainable growth path in a context of price stability. The ongoing recovery, which started almost two years ago, is now more firmly taking hold.