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Brussels maintains most of the bloc's banks are sound, following July's stress tests (Photo: andres rueda)

EU banks forced to raise cash or face 'debilitating' contagion

As French banks come under increased pressure from all quarters, the European Commission is rowing back on comments by its competition chief that more EU lenders than previously expected need to be recapitalised.

His spokesman, Amelia Torres, criticised the press for taking his words out of context and said that he had only meant that the existing support measures for those banks that failed stress tests in July should be carried out.

“[Competition commissioner Almunia] said he t...

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