Nicolas Véron: "The European Union has not yet solved its banking problem"
19 October 2010
Véron argues that what is needed remains unchanged: a triage process that credibly identifies capital gaps among Europe’s most important financial institutions and leads to adequate recapitalisation and restructuring.
The US faces major economic and social challenges, but its financial crisis appears to have essentially ended more than a year ago. By contrast, the European Union collectively met the challenge with a succession of false hopes.
A solution to the EU’s banking problem would require a level of awareness and political commitment that has been sadly absent so far, especially in the largest euro area countries.
© Bruegel
