European Economy. Quarterly report on the euro area 2012.

Abstract

The relative calm on the markets during the month of August offered everyone a much-needed pause to recover and reflect. Instrumental in placating the situation – maybe not permanently, but in any case with some enduring effect – were in my view two important factors. These were, firstly, the achievements of the Euro Area Summit of 29 June that have provided a clearer sense of the direction Europe needs to take, and as a result of which we now have concrete proposals on a Banking Union on the table. Secondly, the ECB's decisive announcements over the course of the summer and its introduction of Outright Market Transactions (OMTs) have left no doubt concerning the integrity and viability of the euro area.