Ahead of the release of the results of stress tests to see how Europe’s bank would cope with a worsening economy, Germany’s Chancellor Angela Merkel has been trying to counter scepticism.
She said the tests of 91 European banks are very realistic and should be looked at in the context of the existence of rescue plans already in place for Greece and to support the euro.
Merkel told reporters: “We don’t have to have stress tests where we torment ourselves with totally unrealistic scenarios. The euro is embedded in a large rescue package at the moment. If we had done these stress tests on the banks before the rescue package, we would of course had to act differently.”
At the same time Merkel’s Finance Minister Wolfgang Schaeuble was in Paris for a meeting of the French cabinet.
They approved a joint call by France and Germany to the European Union urging tougher sanctions on countries that repeatedly break the rules on limits for budget deficits.
The call – along with the bank stress tests – is part of European efforts to repair damage from the Greek debt crisis.