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

Economics Watch Reports (10 pgs)
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