The cost of borrowing was anchored at record lows for a decade. Families and many business sectors, such as the housing market, benefitted from cheap credit.
Things rapidly changed last year. The effects are already felt and the financial reporting from companies across Europe started to cast a magnifying glass on those effects.
In its protective role for the euro, the ESM pays close attention to financial reporting and stands ready to support financial stability within the currency union, drawing upon its available tools. The ESM is already able to help euro countries who have lost or are at risk of losing market access to investors or help them maintain access to market financing at good terms. Upon Treaty ratification, the ESM will also be able to help the Single Resolution Fund which supports European banks.
Proper accounting practices help to avoid or limit financial and non-financial problems. Recent reforms have attempted to beef up the International Financial Reporting Standards (IFRS), following the global financial catastrophe that unfolded in 2008. With the return of inflation, the effectiveness of those reforms may now be tested. (...)
Things rapidly changed last year. The effects are already felt and the financial reporting from companies across Europe started to cast a magnifying glass on those effects.
In its protective role for the euro, the ESM pays close attention to financial reporting and stands ready to support financial stability within the currency union, drawing upon its available tools. The ESM is already able to help euro countries who have lost or are at risk of losing market access to investors or help them maintain access to market financing at good terms. Upon Treaty ratification, the ESM will also be able to help the Single Resolution Fund which supports European banks.
Proper accounting practices help to avoid or limit financial and non-financial problems. Recent reforms have attempted to beef up the International Financial Reporting Standards (IFRS), following the global financial catastrophe that unfolded in 2008. With the return of inflation, the effectiveness of those reforms may now be tested. (...)
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