Prime Minister António Costa this Friday expressed his “pleasure” at the “message of great confidence” that European Central Bank (ECB) President Christine Lagarde conveyed to European Union (EU) leaders regarding the soundness of the European financial system.
In a brief press conference following the Euro Summit, which ended two days of Heads of State and Government on the 27th, and on a day when major European stock markets punctuated the losses suffered by banks due to the return of fears about the financial health of European banks, Costa stressed in a message ECB President.
“The first message I would like to convey is that we are pleased to note the message of Ms. Lagarde with great confidence regarding the strength of the European financial system, explaining in detail the differences between the European regulatory system and the North American or even the Swiss regulatory system, and therefore, and the reasons why we can be confident in the stability of the financial system,” the head of government said.
The Prime Minister noted that, for his part, he had “an opportunity to emphasize that this stability and this confidence will certainly be strengthened if we can speed up the completion of the Banking Union, in particular with the deposit guarantee system.”
According to Costa, “in cooperation with União de Capitals, it will also be fundamental to strengthen the investment capacity of companies and companies so that they can accelerate their modernization process and participate in the dual transition, digital and energy.”
“When guaranteeing sufficient liquidity in the banking system, it is very important that this liquidity be oriented towards productive investments, towards the transition to energy, towards the creation of more and better jobs, and not continue to be consumed, as it was before. was excessive, in real estate investment,” he said.
Asked what he had a chance to say to Lagarde about the ECB’s successive rate hikes, Costa said the institution’s president’s position is public knowledge and was confirmed in Brussels this Friday. like yours.
“It is known what Madame Lagarde said because she said in the Council exactly what she said publicly. As for what I said in the Council, this is also what I said publicly: the ECB needs to be very careful. about how he conducts this monetary policy,” he said.
António Costa warned: “It is true that the economy has shown more resilience than expected, but we all fear that this is due to the fact that there has been a very significant accumulation of savings and liquidity as a result of the pandemic and the pandemic. as these savings decrease, measures to raise interest rates may have an effect.”
“As for states, and in particular states where there is high access to loans for their own housing, naturally they should take measures to protect families from the consequences of this ECB policy,” he commented.
EU leaders reaffirmed this Friday that the banking sector is “resilient, with strong capital and liquidity positions” on a day when several European banks are experiencing a sharp decline in the stock market.
In a statement issued following the extended eurozone summit on the second day of the European Council, European leaders ensured that the resilience of the EU’s banking system was “significantly strengthened” by the Banking Union.
“Our banking system is resilient, with strong capital and liquidity positions,” the statement underscores, in which the heads of state and government renew their commitment to “complete the Banking Union.”
The words of the summit contrast with the fall of a number of banks, including the German Deutsche Bank and Commerzbank, in the stock market due to the recent turbulence in the sector and uncertainty about the evolution of interest rates.
The banking union seeks to ensure the stability, safety and soundness of the banking sector in the euro area and the EU as a whole, thus contributing to financial stability.
Portugal was represented at the Euro Summit by Prime Minister António Costa, and Eurogroup President Pascal Donoghue and European Central Bank President Christine Lagarde participated as guests.
Author: Portuguese
Source: CM Jornal
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