European banking consolidation is the key to deal with the debt crisis - Interview Pisani Ferry

 Pisani - Ferry recently told Xinhua in an exclusive interview that the reason why the EU's policy failed to play the desired effect is mainly due to the debt crisis, the EU has been the movement as a simple to handle the crisis, ignoring the banking crisis and the relationship between sovereign debt crises; then there are always passive fight to resolve the crisis, rather than proactive.

banking consolidation in Europe the key to a comprehensive response to the debt crisis - Interview with Economic Research Institute for Pisani - Ferry

BRUSSELS, Feb. 23 (Xinhua Liu Xiaoyan) since Since the outbreak of the European sovereign debt crisis, the EU adopted a series of measures to set up 750 billion euros from a rescue mechanism, the introduction of new mechanisms to strengthen economic governance, but the shadow of the debt crisis had not been away. In response, Brussels European and Global Economic Research (Brunet Siegel Institute for Economic Research) Director for Pisani - Ferry that the EU now needs to quickly develop a fundamental solution to the debt crisis of the comprehensive program, and clean-up Banking consolidation is the key to this program.

present, Portugal, Spain and other EU countries the number of bad loans of banks in the end, and these bad debts may be banking systems of these countries and other countries in the euro area banking system brought a risk and still suspense. Bank of the EU last year conducted a stress test, but the Irish then dragged down by its banking sector to stress the fact that the credibility of the test greatly reduced, and thus allow the market to worry about the actual situation of the euro area banking sector may be worse.

Pisani - Ferry said that the banking crisis and sovereign debt crises are closely related, and the euro area countries there is a high degree of dependence between. To solve the debt crisis, he thought the top priority is to thoroughly investigate the status of the European banking sector and restore stability in the banking system.

(This article Source: Xinhua)