Brussels, 28/10/2014 (Agence Europe) - The Chief Economists' Group of the European Banking Federation (EBF) has lowered the growth forecasts for the eurozone for 2014 and 2015, from 1.1% of GDP to 0.8% and from 1.5% to 1.2% respectively.
According to the banking industry, inflation will remain “low” this year, at 0.6%.
The banks are standing ready to play their part as “providers of credit”, said the Chief Executive of the EBF, Wim Mijs, who went on to say that the results of the recent health check of the banking sector make it “clear” that there are “no obstacles other than a lack of demand” for credit. He said that policymakers need to act with swift determination in order to re-establish the confidence of the economic actors.
The banking industry takes the view that “structural reforms” need to be accelerated through the eurozone, whilst budgetary consolidation must be maintained and investment stepped up.
As regards the financial legislative agenda, the EBF argues in favour of the completion of banking union, with the setting in place of banking union within the eurozone from 4 November and the implementation of the capital markets union, which will help to develop financial markets designed to consolidate the financial positions of SMEs. Bespoke securities and credit guarantee schemes will help these companies to achieve a return on their investment in the future, the European organisation argues. (MB)