Although banks and financial institutions were better prepared after the 2008 financial crisis, Pablo Hernández de Cos, head of the Bank of Spain, warned that the true cost of the pandemic will not be known until the measures to protection will not be withdrawn. Despite praise from the European Central Bank and Spain’s financial measures, de Cos stressed that the long-term consequences of the pandemic are not certain. For this reason, he called on governments to act now before it is too late to solidify the EU financial market.
He also called for the swift implementation of the provisions of the Basel III accord – designed to mitigate risks in the sector -.
Mr. de Cos said at the opening of the conference on financial stability: “The crisis is far from over.
“Now is the time to act. “
He praised some of the measures put in place to stop the worst of the pandemic, however.
He added: “The current crisis has led to extensive and extraordinary monetary and fiscal support measures, which have largely limited the impact on the banking sector, which would otherwise have had to face a global economic slowdown in worse conditions.
“Had it not been for the measures taken,” he explained, “banks would have reduced their capacity to finance the real economy.
In order to help the bloc recover from the pandemic, the EU has offered the gigantic fund to boost economies and spur recovery.
In addition, the EU has also approved a budget worth up to € 1.2 trillion (£ 1 trillion).
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Under Article 7 of the Treaty of Europe, a member state can have its voting rights suspended if it violates EU standards.
Mr Asselborn said: “Europe will not digest the end of the rule of law.
“Europe will die from such a development.
“Europe was built on democracy, freedom, respect – and the rule of law.
“We need to make it happen, not only to members who uphold the rule of law, but also in places where the rule of law is not thought to be so important.
“If you challenge the rule of law, you do it for a reason.
“And that reason is the retention of power.”
Additional reporting by Maria Ortega.