Almunia called for efforts to re-establish EU financial stability
The Vice President of the European Commission responsible for Competition Policy, Joaquín Almunia, spoke yesterday during the Barcelona Graduate School of Economics Inaugural Lecture, addressing issues like the financial crisis, the euro and the Economic and Monetary Union.
As he stated: “We are facing complex and difficult challenges. There are no more pressing issues today for the Union than to re-launch the economy. And to succeed in this endeavour, we must first solve the euro crisis once and for all. At the same time, we must give the Union adequate governance institutions and policy instruments to take it out of the recession and create the conditions for sustainable growth.”
Vice President Almunia said that Europe is experiencing the worst crisis since the Great Depression that preceded World War II and the uncertainty around the euro has severe effects on the lives of the EU citizens. The lack of confidence in the EMU has led to the re-nationalisation of public-debt markets, meaning that the banks in the indebted countries tend to hold growing amounts of their sovereign bonds. As a result, all EU governments have to set priorities and take the necessary measures in order to regain trust in the euro and achieve the economic and social revival of Europe.
He also said that since the EU was not ready to cope with the financial turmoil that originated in the US, the need to prevent the collapse of its financial system was urgent. The State aid rules introduced the necessary changes to prevent the worsening of the situation and supported banks with approximately €1.6 trillion between October 1st 2008 and end of 2011.
However, the crisis remains and in order to achieve satisfactory results the changes of financial-regulation systems have to go on. Vice President Almunia also mentioned the decision to establish a new banking union and to complete the EMU and pointed the importance of improving the fiscal policies co-ordination as to succeed in overcoming the crisis.
Finally, he recognized the painful consequences that the crisis has brought to EU citizens but he said that more effort is needed so as to re-establish financial stability.
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