Sydney, 21/02/2014 (Agence Europe) - US Treasury Secretary Jacob J Lew says: “The EU would be well advised to stimulate more growth”.
At a conference at the International Finance Institute in Sydney on 21 February, Lew says Europe had made a lot of progress, but plenty more remained to be done.
Although Europe is improving and more countries in Europe are experiencing economic growth, the treasury secretary stressed the high unemployment in much of Europe. Some countries have an economic surplus, but the situation is not as rosy in other countries, he stated, adding that there was a genuine risk of deflation in a number of countries of Europe.
Highlighting progress in Europe to consolidate the financial system, like the work in progress to set up a bank resolution mechanism (SRM), Lew criticises the slow reaction times in the EU and how it takes too long to put things in practice.
Lew said it would be good for the EU and the rest of the world if Europe did more in the field of backstops for bank resolutions.
He said international rules were needed, rules of good practice on either side of the Atlantic. Although the EU and United States are working together on convergence of financial rules, particularly for derivatives, stumbling blocks remain over the Fed's new rules for foreign banks in the United States (see EUROPE 11023). (CG/transl.fl)