The European Central Bank (ECB) is due to undertake a detailed review of the finances of Eurozone lenders. This could unearth bad debt problems with the lenders in countries such as Spain, Italy, Portugal, France and maybe even Germany.
Last year the European Stability Mechanism was established as a €500bn (£420bn) rescue fund and this year is looking into
obtaining advice from investment banks, as well as support staff, in order to rescue European lenders that may be in trouble.
Positive numbers from Germany’s strong economy in August seemingly spelled the end of the European recession but many underlying problems of the debt crisis remain. These include continued unemployment highs in Spain and Portugal, reduction in Chinese exports trading with Germany, and Greece’s third bailout due in November.
The German political election this week could see Angela Merkel return to power. Her aims for achieving closer European ties could lead to increased help for struggling economies such as Greece and Cyprus.
Bringing about a closer union between countries in the Eurozone could be done by implementing a banking union which would give Brussels the authority over failing banks and how they would be dealt with. The initial part of this has already been put into motion by the European parliament, which passed laws giving control of bank regulation in the Eurozone to the European Central Bank.
Before this responsibility is completed taken on by the European Central Bank, they require a fresh start and so is expected to unify accounting rules as well as check for problems in the books of Eurozone banks.
Company Name Checker
Choose a country to start your business