Banking Union Could Provide Framework for Effectively Addressing the Financial Crisis
- The Conference Board Leading Economic Index® (LEI) for the Euro Area fell for a third straight month in June, led by declines in confidence indicators and stock prices
- Capacity of European Stability Mechanism(ESM) and European Financial Stability Facility (EFSF) to bail out banks may help restore lost confidence and reduce yields—at least for now
- Current economic conditions remain weak, unemployment continues to rise, and risks are heavily tilted toward downside
- Growth policy measures provide some relief over the long term for weak economies, but are not likely to significantly change short-term outlook
- Some recovery in competitiveness is happening even without policy measures
- By integrating the provision of goods and information and communication technology (ICT) enabled services, firms in Europe will enhance competitiveness and provide opportunities for economic and job growth
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