The package of prudential reforms for banks, known as Basel IV, is at a standstill due to the strong impact that it could have on the entire sector. The EU fears that the increase in the capital requirements could weaken the lending activity of European banks.
In its strategy for 2017-2020 the EBA will focus on the introduction of a leverage ratio and liquidity, evaluation of the banks' internal models, preparation of recovery plans, convergence of supervisory measures, consumer protection and financial innovation.
The Stability and Growth Pact says the EU countries have to maintain a fiscal deficit no higher than 3 per cent of the GDP and reduce their public debt below 60 per cent of the GDP. All the countries have decreased the fiscal deficit, but not the level of debt.
The strategy for the prevention of a long-term unemployment adopted in 2016 by the EU Council repeats the mistakes of the "Youth guarantee" program. The new scheme focuses on taking formal actions, regardless of the economic conditions.