1. EPP Group CRIS Committee
Workshop on
'The Impact of the Crisis on the New Member States –
Non-Eurozone New Member States'
Daniel Gros
Brussels, 9 December 2010

2. The benefits of the euro (ECB)
Change in consumption
4 fixed exchange rates
-18.8
4 euro area members
-3.6

3. The ECB as a (financial) shock absorber
MFIs Net lending from national Central Bank as % GDP
Lending by central banks to credit institutions as of August 2010
Lending by CB relative to domestic deposits
Bilions euros
Greece
37%
92.5
26%
Ireland
72%
130.0
19%
Portugal
23%
41.1
13%
Spain
10%
119.0 5%

4. The benefits of the euro (ECB)
Change in consumption
4 fixed exchange rates
-18.8
6.5
4 euro area members
-3.6
-1.9

5. Change in current account
4 fixed exchange rates
-2.7
4 euro area members
3.3

6. The ECB as a (financial) shock absorber
Increase since early 2008
MFIs Net lending from national Central Bank as % GDP
Lending by central banks to credit institutions as of July 2010
Lending by CB relative to domestic deposits
Bilions euros
Greece
35%
82.9
Ireland
57%
93.2
Portugal
-2%
-3.2
Spain
-5%
-50.1