IMF: Europe's financial stability is 'fragile'

The International Monetary Fund said Friday that Europe has made progress in addressing its financial crisis, which has lingered for more than three years, but stressed that financial stability remains 'fragile.' In its first-ever overall review of the stability of the European Union's financial sector, the IMF called for 'fast and sustained progress' by the euro area to 'quickly' put into operation a single European stability mechanism that can directly recapitalize troubled banks, dpa reported. Such an entity is seen as crucial to restoring trust between financial partners and preventing a repeat of the crisis, as it could be used to break the link between the banking crisis and sovereign debt.