Oct. 14 (Bloomberg) -- European leaders need to take action to safeguard the euro and strengthen the region’s banking systems, said BusinessEurope, an employers’ federation.
“EU leaders can make an immediate difference by committing to support efforts to recapitalize banks,” the group said in a letter to European government heads released today in Brussels. “There is no other option but to secure the euro.”
Shoring up lenders would increase financial stability and promote investment in the short term, BusinessEurope said, with economic governance changes and fiscal discipline needed in the long term. The group said it “fully supports” the July 21 agreement to provide new aid to Greece and to expand the scope of the European Union’s main rescue fund.
BusinessEurope urged the EU to implement its services directive and make progress on trade negotiations with Canada, Ukraine, India and South American nations. European exporters will save 800 million euros ($1.1 billion) in tariffs this year because of a trade agreement between the EU and South Korea, the group said.
--Editors: Jennifer M. Freedman, Eddie Buckle
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