Financial turmoil affecting EU's economy
EU finance ministers said that financial turmoil is affecting the region's economy although the impact is so far contained. Day in Pics
By Agencies |
BRDO PRI KRANJU (Slovenia): European Union finance ministers said on Friday that financial turmoil is affecting the region's economy although the impact is so far contained.
Slovenian Finance Minister Andrej Bajuk, who led talks between the 27 nations, said "downside risks" are starting to materialize, sharpened by higher prices for oil and food.
Summing up talks between the EU's 27 member countries in Slovenia, Bajuk said governments were continuing to call on banks to make "full and immediate disclosure" of losses such as those from complex investments based on the US subprime housing market.
This would help shorten the stormy weather that the economy will face this year and next year, he said, when a "moderate slowdown" was likely.
Slovenian Finance Minister Andrej Bajuk, who led talks between the 27 nations, said "downside risks" are starting to materialize, sharpened by higher prices for oil and food.
Summing up talks between the EU's 27 member countries in Slovenia, Bajuk said governments were continuing to call on banks to make "full and immediate disclosure" of losses such as those from complex investments based on the US subprime housing market.
This would help shorten the stormy weather that the economy will face this year and next year, he said, when a "moderate slowdown" was likely.
| | | Also Read |
| | �� | |
| | �� | |
| | �� | |
| | �� | |
| | �� |
"The European economy, however, is in a good situation due to the sound foundations and the lack of macroeconomic and financial imbalances," Bajuk said, adding that the EU was on target to implement by the end of 2008 a "comprehensive roadmap" to deal with the turmoil and strengthen the resilience of the EU's financial system.
The objectives of the roadmap were to improve transparency for investors, markets and regulators, improve valuation standards for complex investments, reinforce risk management in the financial sector and reform credit rating agencies.
Bajuk said the agencies held partly responsible for the recent credit crisis because some rated risky debt as good had committed themselves to improving the credit-rating process and tackling possible conflict of interest problems because they are paid by the banks whose debt they rate.
"If market-led solutions prove inadequate, we stand ready to consider regulatory alternatives," the finance ministers said in a statement.
EU Economic and Monetary Affairs Commissioner Joaquin Almunia added that the totality these measures would help "as much as possible avoid the transmission of these market turbulences to the real economy, which is what we all want."
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
