European leaders parted ways on Friday afternoon after a eurozone summit which aimed to reassure consumers and markets as the Deutsche Bank concerns continue.
Deutsche Bank shares lost more than 10% on the Frankfurt stock exchange on Friday, raising further questions about the stability of European banks. But leaders were eager to emphasise the safeguards and guarantees that have been put in place in the eurozone since the 2008 financial crisis.
“It is inevitable that there will be reactions on the markets following international events (the collapse of Silicon Valley Bank in the United States and the takeover of Crédit Suisse). But the European banking network is very solid, supported by strict agreements”, Dutch Prime Minister Mark Rutte stressed.
He dismissed worries that Europe might be heading for a new banking crisis, insisting that stock movements on the markets are "part of the system”.
One message in unison
German chancellor Olaf Scholz had a similar message, stating that “Deutsche Bank has profoundly modernised its business model and is profitable”.
Likewise France's President Emmanuel Macron: “The eurozone is the zone where the banks are the most solid."
European Central Bank (ECB) president Christine Lagarde argued that “the eurozone banking sector is resilient because it has strong capital and liquidity”. She added that the euro area has “applied internationally agreed regulatory reforms after the global financial crisis.”
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Alexander De Croo had national duties to attend to but had already given assurances about the “stability” of the eurozone and its banks, following lessons well learned after the 2008 crisis.
Also discussed in Friday's meeting was the reform of the economic governance framework, for which the Commission has already issued “guidelines” at the end of 2022. On this matter, Greek MEP Kyriákos Mitsotákis said "there is a general view among many Member States that the (reformed) framework must be completed before the end of the year.”