European Union finance chiefs have said that government stimulus measures for banks in the Eurozone should begin to be halted by 2011 at the latest.
European Central Bank president Jean-Claude Trichet told a meeting of European finance experts in Sweden that once economic growth takes hold European governments should start to end their stimulus schemes.
His words came following a paper from the Brussels-based Breugel research group which sketched out an exit strategy from government financial support for Europe's banking institutions.
"Bank recapitalisation and restructuring should be completed in all EU countries as a matter of urgency," said the report.
It added that the European Commission should work with central banks to come up with clear deadlines for the phasing out of liquidity support.
The authors also said that governments must combine the withdrawal of the stimuli in 2011 with prioritising consolidating their budgets over making cuts.
A stress test of the EU's biggest banks said they could withstand more than $580 billion of additional losses over the course of this financial year.
By Claire Archer
Calypso voted the best software solution and best buy-side collateral management solution of the year by FTF Calypso Technology Inc., a leading provid...View article
Calypso Technology, Inc. is sponsoring the Central Banking Summer meetings from June 14th to June 18th, 2021! Herve de Laforcade, Global Head of Marke...View article
Manchester, UK, 10 June, 2021: AccessPay is now available to hundreds of thousands of Sage users through their online marketplace.The fast-growing Man...View article