Greater harmonization of Europe’s banking system under common oversight is an essential first step to strengthening financial stability in the euro region, Italian Prime Minister Mario Monti said in an interview with Sueddeutsche Zeitung.
He added that failure to reach an accord at the Brussels summit next week will mean continued high interest rates for a large part of Europe with damaging consequences for companies, the newspaper reported in a preview of an article to appear today. A failure to reach an agreement likely will turn public opinion against greater integration, he also told the newspaper.
The European Union’s deficit as a whole amounts to 3.6 percent of gross domestic product, including 3.2 percent in the euro zone, 4.4 percent in the Netherlands, 4.5 percent in France, and 0.9 percent in Germany, while Italy will have a structural surplus of 0.6 percent in 2013, he also said, according to SZ.
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