The ECB believes that the next economic crisis in Europe can begin with the real estate market

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Danièle Nouy, the head of the supervisory board at the European Central Bank, in an interview with a Latvian news agency said that the next economic crisis in Europe could emerge in the real estate market, Reuters writes. At the same time, she noted that now, European banks are better prepared than during the previous crisis 10 years ago. In the euro area in some places there was a sharp jump in property prices under the of record low interest rates. According to some officials, a soft monetary policy can lead to the formation of “bubbles” of assets that can cause a new crisis. Nouy noted that in the Baltic countries, the rise in prices for commercial real estate and the use of floating interest rates pose a threat to the emergence of a crisis situation.

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