Private debt levels remain high
While household debt has fallen marginally in the EU, corporate debt has edged up in the euro area. Both household and corporate debt remain high in many European countries, which have not seen debt deleveraging at the same pace as the US.
A sustained rise in confidence, consumer spending and investment requires that the finances of both households and companies are healthy. The relatively high levels of indebtedness in many EU countries are a concern.
Source: CEIC; BIS