Ben Bernanke, Fed's Chairman, said although pressure from debt crisis had eased causing improvement in financial markets worldwide, the old continent has to strengthen its financial institutions, referring that the economic situation is in an embracing phase.

According to testimony prepared for delivery to U.S. lawmakers today, Bernanke revealed that the banking system in Europe is in a massive need for empowerment, while European leaders have to increase economic growth and competitiveness and to reduce external imbalances in the troubled countries.