current transactions account of the rest of the world

current transactions account of the rest of the world

current transfers to the rest of the world

balance of current transactions with the rest of the world

A very high share of non-performing loans burdens the financial sector and high stock of private, public, and external debt hangs on the economy, in the context of high unemployment and weak potential growth.The current account is still negative and is not adequate to guarantee a sustainable evolution of the net external liabilities stock.Government debt is expected to have peaked, but the current relaxation of fiscal policy is foreseen to slow down the needed adjustment.Despite a major restructuring of the banking sector and improve ...[+++]d capital positions, the stock of non-performing loans is slowly declining but remains very high.

The surplus vis-à-vis the rest of the world has increased, while the surplus vis-à-vis the euro area has declined. The latter has been driven mainly by a reduction in exports to the rest of the euro area, rather than an increase in imports by Germany.

Again, as I said earlier, I am not being evasive at all, but I wish to inform the committee to the extent I can without informing the rest of the world through the record of these proceedings exactly what those operations are.

21. WELCOMES the publication of the Commission’s analysis of large sustained current account surpluses and of the main driving forces. In this context, STRESSES the important financial and trade inter-linkages between deficit and surpluses within the euro area, and the importance of appropriate financial supervision to overcome financial market fragmentation and ensuring an adequate allocation of savings, RECALLS that unlike current account deficits, large and sustained current account surpluses do not raise concerns about the sustainability of external debt or financing capacity that affect the smooth functioning of the euro area; the risks of negative spill-overs for current account surpluses are therefore less pressing than for current ...[+++]account deficits. While it is particularly urgent for deficit countries to continuing current efforts addressing their competitiveness challenges, UNDERLINES that addressing market failures and structural reform needs, and wages growing in line with productivity in surplus countries would contribute to rebalancing within the euro area. In particular, measures aimed at improving the functioning of specific sectors, such as services, financial intermediation and other non-tradables could be considered. Finally, EMPHASISES the need to preserve the competitiveness of the EU economies vis-à-vis the rest of the world.