If it is asked to illustrate the meaning of capital crunch then I would say it is the prolonged state of recession. Though this month the UK economy is getting strong for good economy and euro zone, however, the confident data showed that the main drivers are service and industry sector who were marginally brighter and had strong impact on economic sentiment on Europe. Even this week, European market continues to rise with annualized consumer price up from 1.3% from 1.2%. Consequently, the U.S Dollar which also has strong position against GBP and Japanese Yen, because of sign that US is getting strong sign from housing market and cheerful consumer market.

According to PWC, which is second best multinational professional service, predicts that European banks will face a substantial capital crunch in the year 2014. The capital shortfall are about to expect €280 billion. As the major regulatory changes of new industry, it will be very painful for the bank to rejuvenate to the previous state. Though there will be a space to execute plans, and the players in the market will apply more strategies to drive banks to continue with their urgent programs said by the one of the professional services. They also state that euro zone current rising will be an encouragement to the business to lift their employment and in investment plans. 

Is there anything to worry about from the euro zone capital crunch? Yes,  and indeed there is a sentiment attach with five biggest euro zone economies like Italy, Spain, Netherlands, Germany and France and the year 2014 could be a temporary situations of prolonged recession where ECB can again exercise the plans further to uplift the euro zone capital crunch.