Joaquin Almunia Amann optimistic about Eurozone economy

07-06-2009 15:03

The Eurozone economy indicates a recovery, but it is premature to determine a serious recovery, according to the European commissioner for economic and monetary affairs, Joaquín Almunia Amann. “The Eurozone conditions remain alarming despite the optimistic signs,” commented Almunia, who remained non-committal at a meeting of EU finance ministers.

Transparency Europe's banking sector

The European commissioner for economic and monetary affairs also insisted on increased bank transparency in Europe. Fears increased that European banks could be in danger due to US banks writing off far more investments. Eurozone’s loaning in the private sector increased at the weakest pace in the history in May.

Eurozone’s challenge

Almunia also commented that “the Eurozone target does not aim on (fiscal) stimulus, since stimulus is being effected. The challenge is about strengthen imbalances, repairing the financial structure, recovering confidence.”

Stress tests

European banks are subjected to stress tests at the national level. It is still uncertain whether capital should be obtained from the private- or public-sector in order to acquire the required funds, according to Almunia. Making the results of the stress tests public is an “option”, but in spite of that decision, clearness and openness are “crucial.”