Euro Area Policies: Selected Issues
IMF Staff Country Reports, July 21, 2010
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- Euro Area Policies: Selected Issues
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Bibliographic details
- Published: July 21, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455205806.002
Summary findings and analysis
- To reduce the negative effects of a bank-lending crunch on economic activity, adequate credit provision should be ensured.
- Further bank recapitalization, restructuring and consolidation of the banking sector, and regulatory reform decisions will reduce uncertainty.
- A long-lasting configuration of the euro-area’s fiscal architecture can be achieved by tightly coordinated reforms of national fiscal frameworks.
- Substantial benefits will emanate from deepening further structural reforms.
- Financial sector reform in the EU is proceeding at a rapid pace, and poses challenges and opportunities for the EU.
Policy recommendations
- Ensure adequate credit provision to mitigate the negative effects of a bank-lending crunch on economic activity.
- Pursue further bank recapitalization.
- Implement restructuring and consolidation of the banking sector.
- Finalize and implement regulatory reform decisions to reduce uncertainty.
- Coordinate reforms of national fiscal frameworks tightly to achieve a long-lasting euro-area fiscal architecture.
- Deepen structural reforms to realize substantial benefits.
- Manage challenges and exploit opportunities arising from rapid financial sector reform in the EU.
Thematic coverage and subjects
- Bank credit
- Financial sector policy and analysis
- Labor, Labor market reforms, Labor markets
- Money
- Public debt
- Systemic risk
Keywords (as provided)
- bank, Bank credit, bank lending crunch, bank loan, bank resolution regime, CR, Europe, european financial stability facility, GDP, Global, government solvency, ISCR, Labor market reforms, Labor markets, lending, member state, reform labor market policy, regime, single banking market, Systemic risk
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- Microsoft Word - DMSDR1S-4225348-v6-EEA0510_ Selected Issues_ 2010 Europ Area Policies.DOC