The report is about the “intergenerational transmission of poverty in the UK & EU,” an issue that is becoming more and more obvious as inequality rises following the measures taken to mitigate the effects of the financial crisis on capital markets.
The five-year old recovery has yet to be felt in the real economy. For people who find it difficult to find jobs or for those whose salaries have stagnated, it still feels pretty much like a recession.
Deleveraging by European banks hit by the debt crisis, by new regulation and by upcoming tests of their health is among the main reasons for the threat of deflation that hangs over the eurozone, according to two banking experts.
The reform process has been stalling in Central, Eastern and South-Eastern Europe and in the former Soviet countries even since before the crisis, and it has even reversed in some countries, the European Bank for Reconstruction and Development’s Transition Report 2013 shows.
The Asset Quality Review (AQR) that the European Central Bank (ECB) must carry out on banks in the eurozone as part of moves towards becoming the banking union’s single supervisor could increase the deleveraging already happening in Central, Eastern and Southeastern Europe, EBRD chief economist Erik Berglof told Marketmoving.info.
Subsidiaries of Western European banks present in Central, Eastern and South Eastern Europe (CESEE) reported an increase in demand for loans over the six months to October for the first time since the crisis started, a survey by the Vienna Initiative showed on Friday.