A Financial Sector Assessment Program (FSAP) team led by the Monetary and Capital Markets Department of the International Monetary Fund (IMF) visited the European Union (EU) during November 27–December 13, 2012, to conduct a first-ever overall EU-wide assessment of the soundness and stability of the EU’s financial sector (EU FSAP). 

The mission arrived at the following preliminary conclusions, which are subject to review and consultation with European institutions and national authorities: the EU is facing great challenges, with continuing banking and sovereign debt crises in some parts of the Union; and the present conjuncture makes management of the situation particularly difficult. The mission’s recommendations include the following: steps towards a banking union; reinvigorating the single financial market in Europe; improved and expanded stress testing; splitting bank and sovereign risk; and effective crisis management framework to minimize costs to taxpayers.