Barroso prepares for euro summit

PROPOSALS to recapitalise European banks will be made by European Commission president Jose Manuel Barroso today ahead of a euro area summit on Sunday week.

The European Banking Authority (EBA) told banks on Friday they want them to hold a minimum core Tier One ratio of 7% under a recession scenario according to Reuters. Many will need to increase their capital position at a cost of €100bn.

Worst hit would be Greek banks based on last July’s stress test, the Royal Bank of Scotland, Germany’s Commerzbank and Deutsche Bank, French Society Generale and Italy’s Unicredit.