We are well aware that crises that incorporate a significant financial downturn are usually deeper and longerlasting. The health crisis will directly affect the profitability of the European banking sector. Such profitability was already low before the crisis broke, and events have highlighted the need to tackle even more urgently certain challenges, such as those associated with digitalisation, the management of cybersecurity risks, reputational risks and those relating to climate change. This underscores the importance of making further headway in improving banking efficiency. Given the extraordinarily prevalent role played by this sector in the Spanish and European economy, how successfully these challenges are resolved will notably influence the intensity and sustainability of economic growth in the coming years. The importance of an extension and selective adaptation of national stimulus measures In the national economic policy arena, achieving the dual aim of supporting the recovery and smoothing the adjustment of the economy to the post-pandemic scenario calls for two actions. First, the authorities must extend and regularly recalibrate some of the 6  measures already applied, which will have to be more closely focused now on the groups of firms, sectors and individuals most affected. And further, their design should enable the structural adjustments needed ahead of the new post-pandemic environment to be brought about. Allow me to illustrate this idea in relation to two measures that have been particularly important in recent months: the policies on guarantees and on ERTEs.

Investments into the GCC are being driven by several positive factors: infrastructure development to cater for its hydrocarbon sector, rapidly-growing populations, market liberalisation and diversification beyond oil and gas. A 2014 industry survey 1 by Mergermarkets highlighted that investments from Asia into the GCC would soon equal that traditionally sourced from Europe, as Asian companies become more active in the Middle East. The converse is also true. Attracted by Asia’s good growth prospects, GCC investors have increased their investments not just in energy markets, but also in telecommunications, finance, and other industries in Asia. For instance, GCC state-owned oil firms have been investing in ASEAN energy sectors, while GCC Sovereign Wealth Funds (SWFs) are also showing interest in the agriculture sector across ASEAN. 5. Thirdly, continued growth of GCC and Asian economies, and an expanding network of Free Trade Agreements, will reinforce connectivity between the regions. Notwithstanding more volatile and lower oil prices, the IMF expects the GCC to expand 3.4% in 2015 2, and 3.2% in 2016. Asia will remain the world’s fastest growing region, recording 5.6% growth in 2015, before easing slightly to 5.5% in the following year. Trade and investment linkages will be strengthened with the conclusion of trade discussions between GCC and China, Korea,  1  Gulf Cooperation Council (GCC) Investment Outlook 2014, Mergermarkets. 2  IMF Regional Economic Outlook Update for Middle East & Central Asia, May 2015. BIS central bankers’ speeches  1  India, Pakistan, Malaysia and ASEAN.