EU's Barroso says to unveil bank plan on Wednesday

11th October 2011, Comments 0 comments

EU Commission head Jose Manuel Barroso said he would unveil proposals to recapitalise European banks and improve economic governance in the eurozone on Wednesday.

"Tomorrow, in the commission I will make some proposals on some of those topics," including the recapitalisation of European banks, Barroso said at a press conference Tuesday in the Hague at the end of talks with Dutch Prime Minister Mark Rutte.

Barroso also said he would make proposals regarding eurozone governance, especially ways to enforce budgetary discipline to avoid future crises.

"We need a stronger governance, a stronger discipline ... and that's why I favour the idea put forward by Prime Minister Rutte of a stronger role for the Commission, including the naming of a commissioner of Economic and Financial Affairs" to supervise commitments made by member states, he said.

Stability in the eurozone can only be achieved by "strengthened discipline, with a stronger governance and a common approach by independent European institutions," he added.

"It has to do with the credibility of the eurozone and the credibility of our common effort," said Barroso.

Last week Barroso said the Commission would propose coordinated action by EU member states.

"We are now proposing to the member states to have a coordinated action to recapitalise banks and get rid of toxic assets they may have," Barroso said then in an interview with Euronews TV.

He later noted European banks were already in the process of increasing their capital, but that additional efforts were needed and that "coordination at a European level is of course essential."

Banking recapitalisation is thought to be a key part of the comprehensive response to the eurozone debt crisis promised by French President Nicolas Sarkozy and German Chancellor Angela Merkel after talks on Sunday.

Without announcing concrete details, Sarkozy promised "lasting, global and quick responses before the end of the month."

© 2011 AFP

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