Worst is over in Europe debt crisis says Spanish BBVA bank group head

The worst of Europe’s debt crisis has passed and there will be no problems implementing measures agreed at the December 9 European Union summit, according to Francisco Gonzalez, president of the BBVA banking group.

EU member states are expected to approve a fiscal compact to enforce strict budgetary discipline in the eurozone by March 2012.  The agreement follows Britain’s veto at the summit of a new treaty to resolve the eurozone crisis, leaving open a possible agreement with up to 26 of the EU’s 27 member states.
   
Speaking at a press conference in Seoul, South Korea, Gonzalez said he also expected the UK to back the new measures.

“My view is … the UK will come back to the negotiating table and will accept the European package of measures for the new Europe,” he said.

Gonzalez also called on the European Central Bank (ECB) to do more to stabilise the markets.

The ECB should be ready to help the markets in some circumstances.  “We will see how the ECB works with bonds.” he said. By extending liquidity to 36 months at its last meeting, the ECB is helping to provide liquidity in the eurozone.

The debt of Spanish banks to the ECB rose by almost 29% in November to €97.97bn, up from €76.05bn in October according to Bank of Spain data.

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