- 30% of sovereign spread variance stems from banks.
- Europe must act at regional level to support banks.
- Says need ‘growth friendly’ fiscal adjustment.
- Says OMT structure is ‘exactly right’.
- Says conditionality important in European aid.
The Fed’s Yellen and ECB’s Noyer should be commenting shortly.
“The project of a banking union is so important in the euro zone because if we want to break the link between sovereign (risk) and the banks, we need to transform the banking system into a euro-zone banking system.
“We of course need a unified banking system … we need to have the capacity to step in without the involvement of individual member states.”-rtrs
