Quarterly report on the euro area. Fourth quarter - December 2008
Quarterly report on the euro area. Fourth quarter - December 2008(783 kB)
The global financial crisis has deepened further and considerably darkened the economic outlook for 2009. The euro area has entered into recession territory and confidence is close to historical lows. Against this background, the last 2008 issue of the Quarterly report on the euro area (QREA) focuses on the short-term economic situation, the policy measures put in place to stem the crisis and the linkages between the financial sector and the real economy.
In particular, the report presents the central elements of the 'European Economic Recovery Programme' recently adopted by the European Commission and broadly endorsed by the European Council. It also discusses the economic rationale for the measures proposed.
In addition to its regular assessment of the economic outlook, the report also proposes three analytical sections.
The first presents two indicators of financing cost recently constructed by the Commission. The indicators allow a more precise measurement of the implications of the financial crisis for the financing costs of households and non-financial corporations.
The second section discusses the possible effects of the turmoil on banks' balance sheets, loan supply and on short-term economic growth.
The third section assesses the short-term outlook for non-residential investment, emphasising the impact of rising capital costs and deteriorating corporate balance sheets.
(Quarterly report on the euro area. 04. December 2008.
Brussels. PDF. 41pp. Tab. Graph. Free.)