The crisis has forced countries to address structural unbalances in the EU periphery but also in Europe’s centre, east and south-east.
The Conference on European Economic Integration was organised by the central banks of Finland and Austria in Helsinki on November 26 and 27, 2012. This highlighted the importance of sustainable economic policies and institutions promoting policies for achieving sustainable economic growth in these countries. Debora Revoltella, Head of the Economic Department took part in a discussion entitled “Stop and go of capital flows and deleveraging”.
She presented an EIB survey which highlighted the new role of the banking sector in these countries. As in many western European countries, the economy and financial sector are rebalancing, with supply and demand both constraining credit growth. The survey suggested that policy should be directed towards continued local capital market development and proactive management of non-performing loans.