The Conference Board Economics Watch^® - European View

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