«The deepening financial integration process in the euro zone is taking too long» and «this delay is having serious repercussions» since «the financial fragmentation in the euro zone is threatening the economic recovery», said the Minister of State and Finance, Maria Luís Albuquerque, at an international parties’ meeting in Dublin, Ireland.
Referring this delay is «affecting the monetary policy transmission mechanism», the Minister explained: «This means that one of the fundamental adjustment mechanisms of the euro zone is not working properly and, therefore, the adjustment becomes much more difficult».
Contrary to public finances rules, which had to be urgently implemented, if it is true that progresses have been made due the banking supervision’s single mechanism, it is also a fact that «this Mechanism, as the security deposits’ common net, are not finalized. The same applies to the bank resolution mechanism, which is a critical element to ensure the stability of the new framework », underline Maria Luís Albuquerque.
Without this, the companies’ financing process – especially among the small and medium ones (SME), which are more dependent on bank credit – is hampered in most countries, with serious consequences for the recovery, because – nowadays -, these companies have very different conditions from country to country, when they want to get credit.
Thus, «2014 marks the time for action», to «develop policies with the aim to achieve sustainable growth», as, «despite of the adjustment effort is still going on in many economies – and Portugal is one of this cases -, the renewed institutional framework in Europe, the macroeconomic imbalances correction in progress, and the first signs of economic recovery create space to design, prepare and start on the path to sustainable growth», she concluded.