Publication

Peter Bofinger, Christian de Boissieu, Daniel Cohen, Wolfgang Franz, Jean Pisani-Ferry, Christoph Schmidt, Beatrice Weder di Mauro and Wolfgang Wiegard warn against a false sense of security, which European governments seem to be lulled into, and propose common tests to evaluate the true state of Europe's banking system based on common macro scenarios, common valuation rules and common stress assumptions. The authors believe these respective tests should be done for all the largest European banks simultaneously and the results should be published for each bank, leading to a centralised oversight of the tests, and aggregation of results.

Published in Les Echos and the Financial Times Deutschland.