Banking union no ‘magic answer’ to Europe’s woes, says BoE’s King

Frantic efforts by European policymakers during the past few months to create a banking union in Europe with the European Central Bank (ECB) playing a critical role as a super-supervisor, is no "magic answer" to the eurozone's problems, according to Mervyn King, governor of the Bank of England.

King told a UK Parliament Treasury Committee hearing in London today (January 15) that the real problems Europe needs to address are linked to poor productivity and current account and trade deficits.

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