AP News

Europe financial watchdog: markets still fragile

FRANKFURT, Germany (AP) — Europe's financial stability watchdog says EU markets remain "vulnerable."

That's despite a recent calming of tensions from the crisis over too much government debt in some countries.

The European Systemic Risk Board said Thursday that "high uncertainty and fragility persist in the EU financial system."

The board said tensions were lower because of recent decisions from the European Central Bank. The ECB has said it is ready to buy unlimited amounts of government bonds, which could lower borrowing costs for indebted countries.

Stock and bond markets have since rebounded. But debt levels remain painfully high in Spain, Italy and other countries.

The risk board, chaired by ECB head Mario Draghi, was set up in the wake of the 2007 financial crisis to monitor the financial system as a whole.

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