The need for the major institutional reforms that the Eurozone needs to proceed more rapidly was mentioned by the Governor of the Bank of Greece, Giannis Stournaras, in a speech to the members of the Supervisory Board of the Unified Supervisory Mechanism (EEM) on the occasion of the Supervisory Board meeting. Bank of Greece.
The commander even pointed out the danger of losing the positive pace, noting that often, “as soon as the immediate danger of a crisis subsides, the momentum is lost, and the necessary reforms stagnate due to different national priorities.”
In this context, he stressed that “key aspects of our banking union remain meteoric; without them, however, there is no prospect of progress towards further integration into the euro area.”
The dangers of the war in Ukraine are serious
Turning his attention to the war in Ukraine, the BoG commander warned of serious dangers for Europe.
“If this terrible war continues and sanctions on energy imports continue, the European Union, which is a major net importer of energy from Russia and borders Ukraine, could face serious risks to economic and financial stability. “which have not yet been integrated into the models of our forecasts”, underlined Mr. Stournaras.
Preventive action
Faced with multiple challenges, Europe “must anticipate rather than act a posteriori,” he said, adding that “both the management of banking crises and the processes of bank consolidation need to be reformed.”
“Another area in which precautionary action may be necessary is the ongoing technological revolution that is sweeping many sub-sectors of the financial sector,” he said.
He also referred to the Next Generation EU (NGEU) recovery plan for Europe, stressing that “it is a huge opportunity, but it continues to be structured as a temporary response to the crisis”.
“In order to be a landmark reform, it will have to become a permanent mechanism, combining central fiscal management with supervision. This, of course, will cause friction, both within and between Member States, and will require major compromises.”
Mr Stournaras emphasized that in Europe “we can no longer afford to procrastinate”. “Increasing the total debt. It will not be easy discussions and there is no doubt that there will be moments of tension. But it is our responsibility to ensure that they start on time.”
Source: Capital
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