Stabilise the finance system

Despite first signs of economic recovery, the daily Diena writes that the instability of the financial system continues to present the major stumbling block: "In the US the banks have already written off half their losses. In Europe this figure stands at just one fifth, and such a step means the liquidation of capital. However major financial investiments will be needed for banks to be able to resume lending. The US has already taken the first steps to sort out the banks' balance sheets, and this week the government will present the 19 biggest banks with the results of the so-called stress tests, showing how much capital each bank will need to resume functioning normally. It is questionable whether the criteria will be strict enough to restore investor confidence. But far less has been done in Europe to rehabilitate the banking system."

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