Author: Olimpia Fontana
Date: May 2015

  
Macroeconomic conditions are currently favourable for a recovery of the European economy: the European Central Bank’s (ECB) highly expansionary monetary policy, low interest rates and the dollar exchange rate, favourable prices of oil and gas. Despite this, aggregate demand is struggling to grow. One of the main difficulties facing Europe is the lack of confidence of the private sector, particularly those investors with high levels of liquidity who are nonetheless reluctant to invest their capital in the European real economy.