ECB's Asmussen warns that slowing austerity holds risks

The European Central Bank's (ECB) Jorg Asmussen has warned that slowing budget reforms is a risk, a warning to those who wish to slow austerity measures within the European Union.

Asmussen also added that the EU shouldn't slow pace in creating a banking union, with bank bail-ins beginning with shareholders and bondholders, and depositors being hit last. He said that falling profitability of banks is also a risk, and that balance sheets must be repaired.

Comments that bank's legacy costs will be covered primarily by member states are likely to trouble members such as Spain.