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Table of contents; Basic Statistics of the euro area, 2010; Share in euro area GDP; Executive summary; Assessment and recommendations; The euro area sovereign debt crisis threatens the financial system and growth; Figure 1. Banking and government risk measures; The emerging recession is driven by ti...

Box 1. Main recommendations on resolution of the euro sovereign debt crisisMonetary policy should continue to support nominal demand through maintaining price stability while the public finances are repaired; Figure 3. Total central bank liabilities; The public finances need to be strengthened; Figu...

Table 2. Going for Growth priorities for euro area countriesBox 3. Main recommendations on structural reforms to boost and rebalance growth; Stronger EU fiscal, financial and structural governance is needed to create stability; Figure 6. Net foreign asset position; Box 4. Main recommendations on eco...

Figure 1.1. Current account balancesSome highly-indebted countries are experiencing financial crises; Figure 1.2. Bilateral consolidated banking claims; Figure 1.3. Growth of MFI loans to non-financial corporations; Excessive imbalances contributed to weak public finances; A rebalancing of demand an...

Structural reforms are the foundation of sustainable rebalancingNear-term crisis management measures are needed to avoid a very abrupt adjustment and contagion; Loans from other euro area countries and funding from the ECB have avoided a "sudden stop"; Figure 1.6. Central bank liquidity to national...

Table 1.3. Scenarios for fiscal developments under EU rules