Europe's financial system will undergo this year a more tougher and credible stress test, described as the ones in the United States, which may be completed by the first six-months of 2011.

Last year's stress test results showed seven failing banks from the total 91 banks that underwent the test, which prompted many critics regarding the test's measures and toughness in evaluating banks.

France Economy Minister Christine Lagarde said during an interview with CNBC today that The next European stress tests have to be more credible. They have to be better communicated and that is also part of the picture because if we have to restore confidence and build our stability, we need to safe and secure with our banking system and with our banks, adding that So we have to go through testing just like in the United States for instance, as will happen in the course of 2011.

In addition, she said that The Spanish banks, like the French banks, like the German banks, like the Swedish banks will be...put to test, and will be stress tested in due course. And just like for any other bank in the European Union. If capitalization or recapitalization is required, then we will have to see to that.