The European Commission, newly constituted after the EU elections, has been launching its work for the period of 2014-2019. The bank stress test shows that 25 of the 130 European banks tested are in a problematic situation. One of the five Austrian banks tested does not meet the requirements. With the 120 system-relevant banks in the euro area monitored by the ECB, the first pillar of the banking union has been set up. When performing its annual check of the budget plans for the next household year, the Commission perceives the risk of violation of the stability pact in Austria, Belgium, France, Italy, Malta and Spain. While the European Central Bank has started to buy asset-backed securities, the US Fed is terminating its own expansive programmes. Japan's economic policy is confirmed by the re-election of Prime Minister Abe, but another increase of the consumption tax is being questioned. In Greece, elections are advanced to 2015. – Due to the strong commitment of Austrian banks in south-eastern and eastern Europe and the attendant risks, the Oesterreichische Nationalbank advises increasing the core capital ratio. The report of the commission investigating the occurrences involving Hypo Group Alpe-Adria AG highlights the errors and blunders at all levels of decision-making. The plans for a tax reform to be adopted by Austrian Parliament before the summer of 2015 are based on the work of the tax reform commission.
