Euro Area Policies: 2013 Article IV Consultation
IMF Staff Country Reports, July 25, 2013
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- Euro Area Policies: 2013 Article IV Consultation
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Bibliographic details
- Published: July 25, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484372623.002
Executive summary and macro-financial findings
- Severe market stresses have subsided.
- Private borrowing costs have remained too high in the periphery.
- In the periphery, sovereign borrowing costs have declined from unsustainable levels.
- Declines in sovereign borrowing costs have led to slightly lower private borrowing costs, spurring bond issuance among some banks, and firms.
- Capital flight has gradually eased.
- Bank deposits have stabilized.
- Target 2 imbalances have narrowed.
- These developments have contributed to some early repayment of official liquidity support by stronger banks, though largely from core countries.
- Periphery bank risks are significantly higher than in the core.
Policy-relevant themes and areas of focus
- Bank resolution framework
- Banking and financial markets
- Credit conditions and bond yields
- Public financial management (PFM)
- Monetary policy and money markets
- Labor markets, unemployment, and job creation
- Structural adjustment and private sector dynamics
- Competition and financial statements