The release of test results on the health of Europe's banks has moved closer after Germany dropped resistance to the idea and Spain's central bank said it would act to dispel doubts about its financial institutions.
Yesterday's moves in Berlin and Madrid suggested European leaders were preparing a decisive response to turmoil in financial markets by trying to boost confidence in the eurozone banking system.
An agreement to publish bank “stress tests” across the European Union would mark a significant policy U-turn by Berlin. The European Central Bank believes greater transparency about the state of member states' banks could help to assuage investors' fears about the eurozone and has been exerting intense behind-the-scenes pressure.