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The Euro Area economy remains on track for moderate expansion in the third quarter, with expected quarter-on-quarter growth of around 0.4 percent. Consumers remain positive about their financial situation, and demand is expected to remain an important driver in the ongoing recovery, on the back of solid employment creation and real wage growth. However, industrial production remains muted; a flattening of capacity utilization and a slowdown in emerging markets may signal continued weakness in the months ahead. Furthermore, this month’s report focuses on the details and impact of the banking union in the Euro Area. Completion of the banking union will strengthen financial stability and in the longer term even facilitate growth as credit provision becomes more efficient.