• ECB cannot fill vacuum left by lack of action by governments
  • Leaders need to clarify vision for euro
  • Euro leaders need to dispel fog surrounding vision for euro area, that will lower sovereign spreads
  • Banking union requires European deposit scheme, resolution fund, central supervision
  • Dexia and Bankia problems show that people often underestimate the problem
  • Urge govts to lean on side of doing too much when bank capitalisation problems emerge, rather than too little
  • Further centralisation of banking supervision of systemically important banks is needed
  • ECB support cannot make banks lend to economy, that depends on confidence, capital

Reuters reporting.