European Central Bank's outlook on the Euro crisis

In a statement released by the European Central Bank, the financial body says the overall outlook for financial stability remains "challenging" in the Euro area.

Some of the key aims made in the statement include:

  • Member States should step up their initiatives to strengthen the fiscal and banking components of a robust monetary union.
  • There remains a clear need for a continued focus on tackling the root causes of the crisis, and a comprehensive response remains key to decisively ending a spiral of systemic risk augmentation.
  • An effective use of the financial backstops is needed to halt the downward spiral of self-fulfilling dynamics in the pernicious interplay between sovereign, banking and macroeconomic forces.

Advertisement

Osborne criticises Spain bailout

George Osborne has said the failure of the Spanish bank bailout is "depressing" as the banks had to be directly recapitalised into to convince the markets of its credibility. Spain's borrowing costs have hit the highest level for 13 years.