PARIS (MNI) – The creation of unified European banking supervision
reinforces the view of Fitch that “the Eurozone will survive the
crisis,” Marc Ladreit de Lacharriere, the head of the group which
holds 50% of the ratings agency, said in an interview released Monday.
“It’s the first step towards a banking union which will allow the
link to be broken between solvency of banks and that of governments –
one of the principle causes of instability in recent years,” de
Lacharriere told the French daily Le Monde.
“But important risks still remain,” he cautioned. “The ECB has
allowed governments to gain time for structural reforms. Now it’s up to
them to act. Time is running out.”
France faces a double challenge, de Lacharriere said. It must
continue to cut deficits. “Without reforms in the public sector,
France’s creditors believe it will be difficult to balance the budget by
2017 and thus stem the rise in public debt.”
At the same time, France must restore its competitiveness, he said.
“The labor market must be made more flexible, business taxes must be
lowered to allow for profits and innovation.” This means an end to
business-bashing and a recovery in executives’ morale, since “the return
to growth depends on them,” he said.
De Lacharriere was interviewed for his book “Le Droit de Noter”, in
which he defends the ratings agencies, particularly Fitch, against
charges of responsibility for the financial crisis.
–Paris newsroom +331 4271 5540; e-mail: ssandelius@mni-news.com
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