Following severe financial market turmoil and sovereign stress, the euro area economy has finally emerged from recession and is recovering. However, the pace of the recovery is slow, and in many euro area countries, economic activity remains below pre-crisis levels. The contrast with the US economy, which is more than 10 percent above its 2008 GDP level in real terms, is particularly sobering. What is missing? In his presentation, Mr. Franks will focus on the crisis legacies that are weighing on Europe’s banking and wider financial sector, and which are hindering a broader recovery. Strong policy efforts at both the national and the European level are needed to facilitate fresh lending and wider access to capital markets.