Two elements instil a degree of moderate optimism going forward. First, major policy decisions have significantly reduced tail risks and relieved market stress. The June European Council decisions were swiftly followed up with concrete progress towards establishing a Banking Union. The European Council of 18-19 October agreed on a timetable for the establishment of a Single Supervisory Mechanism and advanced further on the deepening of EMU, encompassing the financial, budgetary, economic, and political dimensions. The introduction of Outright Monetary Transactions (OMTs) by the ECB complemented these institutional efforts, contributing decisively to removing doubts about the integrity and viability of the.
