Slovenia Stress Test Model for Banking Union
7
The planned establishment of a banking union in the EU is a back-door path to a fiscal union, Mrak noted, adding that the monitoring of banks within the banking union as of autumn next year will require prior stress tests at all banks included in the system.
Since not much is known about the methodology of stress tests, the economist expects Slovenia will be a model and wonders whether Slovenian banks would be subject to stress tests twice.
Moreover, he said many questions remained open, including how banks would be salvaged if the monitoring shows that a capital increase is needed.
For the future of the eurozone, Mrak highlighted the importance of finding a way to secure consistent economic growth, without which the eurozone will face "a serious problem with the political sustainability of the system of adapting [to the crisis] based mainly on austerity".
He said the 2014 elections to the European Parliament could be an important turning point if eurosceptics win a large share of seats.
Peter Slapšak, the boss of precious metals dealer Elementum, which organised the congress, stressed that in a time of expansive money printing policy and limitless state bond issuing, investing in gold was still safe, although not a short-term investment.
While investments in banks used to be considered safe, they have now become much more risky, he noted, adding that the prices of gold and silver were falling because of value manipulations, not lower demand.
Market analyst Ronald Stoeferle meanwhile spoke of the increasing importance of monetary security, as he believes that such great attempts at monetary policy changes have never before been made on the global level.
Since 2008, interest rates around the world have been changed over 500 times, he said.