Summary of Deleveraging Patterns in the Euro Area Corporate Sector

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Deleveraging Patterns in the Euro Area Corporate Sector summary
Euro-zone banks grab the headlines, while nonfinancial firms are quietly deleveraging.

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7 Overall

7 Importance

8 Innovation

7 Style

Recommendation

Coming back from the recent recession has been a long, hard slog for many developed economies, particularly Europe’s. Deliberations at the European Central Bank’s headquarters in Frankfurt center on why meager growth persists in the euro zone and how to move beyond it. Given the power and influence of these central bankers, understanding what they are thinking is more important than ever. getAbstract recommends this scholarly but accessible analysis of corporate debt and deleveraging in the EU to executives, bankers, analysts and investors.

In this summary, you will learn

  • How corporate deleveraging in the euro zone has proceeded since the 2008 financial crisis
  • How the subsequent downturn compares with other recessions
  • How European policy makers can use banking reforms to improve the real economy
 

Summary

In the run-up to the 2008 financial crisis, euro-zone nonfinancial companies raised their debt ratios from 73% of GDP at the beginning of 2000 to 100% by mid-2008. In the wake of the crisis, EU corporate debt peaked at 105% of GDP in 2009-2010, dropping only a couple of percentage points by the second...
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The European Central Bank is the monetary authority of the euro zone.


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