In a dramatic appeal, the outgoing ECB president Jean-Claude Trichet in Europe of the debt and banking crisis has called for urgent action. The crisis has jumped from "systemic dimensions," and already from smaller to larger EU states, Trichet warned of the Economic and Monetary Affairs Committee of the European Parliament. There he was speaking as head of the European System Risk Board (ESRB) - a sort of early warning system that was created in response to past financial crisis.
"Banks need to be recapitalized"
Punjab National Bank
Punjab National Bank, London, uk
The outgoing official ECB chief used his last appearance before Parliament, to the policy before the EU summit on 23 October, the seriousness of the situation to bear in mind: "When problems arise, they must be tackled as quickly and efficiently as possible." There is no question that would need to be recapitalized banks in Europe. "That's part of our embassy decisions must be made -.. And as quickly as possible" Crisis management is now in demand, Trichet stressed - especially since the debt crisis have adopted "global scale".
The situation was tense in the markets not only in Europe. "The high volatility in stock markets shows that the tensions have spread worldwide via the capital markets." The highly interconnected financial sector in Europe struggle with contagion risks. This threatened the financial stability in the EU as a whole and affect the real economy in Europe and beyond.
Juncker does not rule out debt cut for Greece
The chairman of euro group, Jean-Claude Juncker, concluded in an interview with Austrian broadcaster ORF an average debt of Greece no longer sufficient. About the size of a debt-section would not speculate on, Luxembourg's prime minister. When asked whether being discussed in the EU had an average debt of 50 to 60 percent, he said: "We are talking about more."
At the same time he pointed out the dangers of such a move. One should not think that is enough in a debt cut, the Luxembourg prime minister warned: "We care must argue that this does not lead to contagion risks in the euro zone." He pleaded for a government to prevent bankruptcy in the euro zone "with all his might." The political leadership in the crisis "not ideal" was, said the head of the Euro Group. "We were not fast enough," he admitted. The financial markets could easily respond quickly.
Also, the council member of the European Central Bank (ECB), Marko Kranjec, expects a debt restructuring in Greece. "I am confident that Greece will not go bankrupt, at least not in the sense that there are other countries is taken into the abyss. A restructuring is highly probable and is already being discussed," Kranjec said in an interview with Slovenian television.
"Banks need to be recapitalized"
Punjab National Bank
Punjab National Bank, London, uk
The outgoing official ECB chief used his last appearance before Parliament, to the policy before the EU summit on 23 October, the seriousness of the situation to bear in mind: "When problems arise, they must be tackled as quickly and efficiently as possible." There is no question that would need to be recapitalized banks in Europe. "That's part of our embassy decisions must be made -.. And as quickly as possible" Crisis management is now in demand, Trichet stressed - especially since the debt crisis have adopted "global scale".
The situation was tense in the markets not only in Europe. "The high volatility in stock markets shows that the tensions have spread worldwide via the capital markets." The highly interconnected financial sector in Europe struggle with contagion risks. This threatened the financial stability in the EU as a whole and affect the real economy in Europe and beyond.
Juncker does not rule out debt cut for Greece
The chairman of euro group, Jean-Claude Juncker, concluded in an interview with Austrian broadcaster ORF an average debt of Greece no longer sufficient. About the size of a debt-section would not speculate on, Luxembourg's prime minister. When asked whether being discussed in the EU had an average debt of 50 to 60 percent, he said: "We are talking about more."
At the same time he pointed out the dangers of such a move. One should not think that is enough in a debt cut, the Luxembourg prime minister warned: "We care must argue that this does not lead to contagion risks in the euro zone." He pleaded for a government to prevent bankruptcy in the euro zone "with all his might." The political leadership in the crisis "not ideal" was, said the head of the Euro Group. "We were not fast enough," he admitted. The financial markets could easily respond quickly.
Also, the council member of the European Central Bank (ECB), Marko Kranjec, expects a debt restructuring in Greece. "I am confident that Greece will not go bankrupt, at least not in the sense that there are other countries is taken into the abyss. A restructuring is highly probable and is already being discussed," Kranjec said in an interview with Slovenian television.
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