The European Central Bank (ECB) presented its Annual Report for 2004 in Frankfurt last week. Despite the Bank’s repeatedly stressed “dissatisfaction” with the health of the public accounts of at least half of the member states, in general terms the ECB expresses confidence in the gradual recovery of the European economy. Yet there are two aspects pointed out in the Report that are giving rise to particular concern for European families. On the one hand, house prices continue to rise (+7% for the fourth consecutive year); on the other, an average rise of 7.8% of the loans disbursed to families (especially in the form of mortgages) is being registered. So consumer credit is growing strongly. While this represents a good financial means, it often contributes to excessive and uncontrolled indebtedness, which leads to forms of poverty that the ECB defines as “modern”. For further information: http://www.ecb.eu.int
