• No signs of over-exuberance
  • See normalization of certain financial conditions
  • Not seeing early signs of strong recovery
  • Structural adjustments within euro zone paramount; can’t have a permanent creditor and lots of permanent debtors
  • Financial conditions have become a little easier
  • More work to be done on repairing bank balance sheets; does not see banks using “fantasy” valuations on impaired assets; national banking supervisors much more active and intrusive; welcomes Basel III rules being phased in