TOKYO (MNI) – Organisation for Economic Co-operation and
Development Secretary-General Angel Gurria on Friday called for
continued efforts in Europe to resolve the debt crisis and restore its
banking system.
“The most urgent issue is the euro area crisis,” Gurria said in a
speech.
“Let’s not forget the courageous efforts already being made by some
national governments,” he said.
“But it’s time to translate these (commitments) into action,” he
said, referring to austerity measures and structural reforms in Greece,
Spain, Italy and Portugal.
Gurria also stressed the need to quickly achieve a full banking
union in Europe, saying European banks “also urgently need to be
capitalized.”
The OECD chief also called for action in the global banking system,
including the introduction of a simple leverage ratio and separating
commercial banking from the securities business.
“Separation of well-capitalized, well-governed and deposit-insured
banks from investment banking will improve the appropriate pricing of
risk by reducing cross-subsidisation and too-big-to-fail guarantees,” he
said.
While acknowledging the need for short-term measures such as
austerity action, Gurria also called for growth action from a
longer-term viewpoint, including structural reforms and deregulation.
“The global crisis has left policy makers around the world a number
of unwanted legacies — low growth, rising unemployment and inequality,
high budget deficits and debt,” he said. “All pose a threat to long-term
growth.”
tokyo@mni-news.com
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