Frankfurt, Mar. 16, (dpa/GNA) – Eurogroup chief Paschal Donohoe has expressed confidence in the ability of European banks to handle the current economic turmoil, in an interview with German broadsheet Frankfurter Allgemeine Zeitung.
European lenders had enough of a capital buffer to manage the current risks to the banking and global financial system, he said, while noting that there were no signs of complacency.
Banks were also prepared for further interest hikes, he indicated.
He expressed confidence that the measures taken in Europe had worked and were still working, while acknowledging that he was not entirely relaxed about the current situation.
Donohue commented also on efforts to reform the EU’s debt and deficit rules, noting that despite the strong opinions of German Finance Minister Christian Lindner, the Eurogroup of eurozone finance ministers had nonetheless managed to agree a common line.
The European Commission is pushing for more flexibility in debt reduction rules, a move about which Germany is more cautious.
GNA