Financial Risks in Europe: The End of the Beginning

15-01-2020

It appears that recession may be on the way for the EU as a whole and the euro area in particular. Having used all of its instruments in the previous crisis, the European Central Bank has little left that can be helpful when the inevitable happens. This brief examines the financial risks facing the euro area and details how flexibility and non-intervention – the direct opposite approach from the global financial crisis – should characterise the response to the next crisis. This document was provided by Policy Department A at the request of the Committee on Economic and Monetary Affairs.

It appears that recession may be on the way for the EU as a whole and the euro area in particular. Having used all of its instruments in the previous crisis, the European Central Bank has little left that can be helpful when the inevitable happens. This brief examines the financial risks facing the euro area and details how flexibility and non-intervention – the direct opposite approach from the global financial crisis – should characterise the response to the next crisis. This document was provided by Policy Department A at the request of the Committee on Economic and Monetary Affairs.

Auteur externe

Christopher A. HARTWELL