Europe Still Stressed After Stress Tests

It is billed as a moment of truth -- but some fear an exercise in obfuscation. The results of European Union stress tests designed to uncover the depth of rot in the continent's banking system come out later this week -- and an accurate reading would go far to answer the key question of whether Europe's debt crisis is finally over.

AP - It is billed as a moment of truth — but some fear an exercise in obfuscation. The results of European Union stress tests designed to uncover the depth of rot in the continent's banking system come out later this week — and an accurate reading would go far to answer the key question of whether Europe's debt crisis is finally over.

We cannot wait another four months to discover that we do not yet know the true state of Europe's banking system, write Jean Pisani-Ferry and Beatrice Weder di Mauro

The results of a "stress test" administered by regulators to Europe's banking system will be revealed on Friday. The outcome will show whether banks are strong enough to cope with another crisis or whether they would need more cash to stay afloat.

French Finance Minister Christine Lagarde said stress-test results due July 23 will show Europe's banking system is solid. She also said it was a mistake to assume stimulus measures and austerity plans were entirely at odds.

European finance ministers sought Monday to ease market jitters over the health of Europe's banking sector, vowing to help banks found by "stress tests" to be vulnerable to a new economic crisis.

Asian stock markets rose Monday amid relief that most European banks passed the much-anticipated "stress tests" aimed at clearing up worries over the region's financial system.