European leaders are discussing the latest developments in the European economy and financial system in Brussels this morning.
On the table will also be the coordination of budgetary policies. At the euro summit, in an “inclusive format [com os 27 Estados da UE]”, European leaders will exchange views on economic governance and take stock of the financial architecture of the Economic and Monetary Union.
At the entrance to the summit, the president of the Eurogroup, Pascal Donohoe, expressed his confidence in the ability of the financial system to deal with the latest events, guaranteeing that the banks will not run out of money.
However, Donhoen admits that the European Union cannot remain indifferent to the latest developments in the banking system, after the Credit Swiss and Silicon Valley Bank crises.
“The recent developments that have taken place in financial markets and banks around the world remind us of the need to always be vigilant and continue to monitor risks as they develop,” said Pascal Donohoe, confident that the banking system will be sound. to face the crisis.
“I am very confident in the volume of liquidity, in the resilience that our banking system has accumulated”, said the president of the Eurogroup, noting that “regulators, institutions, at a national and European level, have played a very important role in the strengthening resilience”. of our banking system.
“Therefore, I think we have the reserves and the resilience to ensure the stability of our banking system at this time,” he said.
support and inflation
Pascal Donohoe defends, before the European leaders, that fiscal policy must remain coordinated, but it is time to introduce changes to face inflation.
“We recognize that the measures that increase demand in our economies and permanently increase indebtedness will no longer be justified given the changes that are taking place,” said Donohoe, although he admitted that “it is necessary to maintain support for our societies, in particular for the most vulnerable.”
The president of the Eurogroup also recalled that there was an agreement, more than half a year ago, “reached last summer”, to advance in the Banking Union. Now, “is the time to implement the measures,” he defended.
Source: TSF
