Europe continues to present barriers to growth in the US and global economies, a top US Treasury official said Friday, citing the Cyprus crisis. "The risk of financial instability in Europe remains a risk to our recovery and the global economic outlook," said the official, who spoke on condition of anonymity ahead of Treasury Secretary Jacob Lew's visit to the European Union next week. "Recent events in Cyprus remind us that Europe continues to navigate a challenging path of fiscal and financial reform," the official said. The official noted the situation in struggling Cyprus, which struck a 10-billion-euro ($13 billion) bailout deal this week with the EU, the European Central Bank (ECB) and the International Monetary Fund. "We have been struck by many comments made by Europeans officials stressing the uniqueness of Cyprus and of course we also recognize that Cyprus has some very unique features," the person said. The senior US official underscored that many banks in Europe were large relative to the size of their home markets, and called on authorities to make further progress toward a common eurozone institutional framework. Such a banking framework, used for recapitalization, restructuring, resolution and deposit insurance, would create a "common backstop" to contain contagion risks. "The framework for oversight... within the euro area still is not commensurate with the scale and cross-border reach of the national banking sector." The US official also said it was "vital" to see rebalancing within the euro area, calling for surplus economies to contribute more to demand in order to ease adjustment in the periphery, "avoid austerity fatigue and renew Europe's economic vibrancy." Lew, in his visit to Europe Monday and Tuesday for talks with counterparts on the global and European economies, will notably meet with ECB President Mario Draghi.
GMT 12:09 2018 Monday ,26 November
Black Friday less wild as more Americans turn to online dealsGMT 15:07 2018 Sunday ,18 November
Refugee host countries discuss UNRWA's financial crisisGMT 17:22 2018 Wednesday ,31 October
Russia climbed to 31st place in Doing Business-2019 ratingGMT 16:53 2018 Wednesday ,17 October
"Putin" We need for collective restoration of Syria's economyGMT 14:02 2018 Friday ,12 October
Govt to announce incentives package for Overseas PakistanisGMT 18:26 2018 Saturday ,06 October
Dubai attracts Dh17.7 billion in foreign direct investmentGMT 09:02 2018 Friday ,21 September
Economy of Georgia demonstrates "strong signs of recovery"GMT 09:03 2018 Wednesday ,24 January
German investor confidence surges in JanuaryMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor