1. J.P.Morgan Chase S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L Challenges to the Euro System Astana Economic Forum Astana, Kazakhstan May 23, 2013 Dr. Jacob A. Frenkel Chairman, JPMorgan Chase International Chairman of the Board of Trustees, Group of Thirty (G30)

2. 2 J.P.Morgan Chase 5/15/2013 Global GDP Shares

3. 5/15/2013 3 Crisis in (of?) the Euro Area Diverging patterns of Growth Diverging patterns of Growth Diverging patterns of Unemployment Diverging patterns of Unemployment Diverging patterns of Competitiveness Diverging patterns of Competitiveness Diverging Payments Imbalances Diverging Payments Imbalances Failed Sovereign Debt Markets? Failed Sovereign Debt Markets? Bad Fiscal Positions Bad Fiscal Positions

4. 4 J.P.Morgan Chase 5/15/2013 Real GDP Growth, Euro area countries

5. 5 J.P.Morgan Chase 5/15/2013 Unemployment Rate: Euro Area Countries

6. 6 J.P.Morgan Chase 5/15/2013 Unit Labor Costs, Total Economy Source: OECD, forecast for 2012 & 2013 Note: Labor cost per unit of output for the total economy

7. 7 J.P.Morgan Chase 5/15/2013 Euro Area Current Account Balance (% of GDP)

8. 8 J.P.Morgan Chase 5/15/2013 10yr Sovereign Bond Spreads

9. 9 J.P.Morgan Chase 5/15/2013 Current Account Balance and Budget Deficit

10. 10 J.P.Morgan Chase 5/15/2013 Gross National Saving Rate and Budget Deficit

11. 5/15/2013 11 Unemployment Unemployment Labor-Force Participation Labor-Force Participation Unemployment and Education Unemployment and Education US and Euro Area Labor Markets

12. 12 J.P.Morgan Chase 5/15/2013 Unemployment Rate: US and Euro area

13. 13 J.P.Morgan Chase 5/15/2013 Labor Force Participation: US and Euro area

14. 14 J.P.Morgan Chase 5/15/2013 Euro area unemployment by level of education

15. 5/15/2013 15 Deleverage Deleverage Aging Population Aging Population Long-Term Budgetary Challenges Long-Term Budgetary Challenges Long-Term Challenges

16. 16 J.P.Morgan Chase 5/15/2013 Household debt to disposable income

17. 17 J.P.Morgan Chase 5/15/2013 Europe Demographic Challenge