RTTNews - The global economy is still far away from a proper recovery and restructuring of banking system is necessary for growth, European Commissioner for Competition, Neelie Kroes said Tuesday.

Addressing an Organization for Economic Cooperation and Development Forum in Paris, Kroes said, We have already seen a strong display of common will among the members of the European Union that we need to improve our regulatory framework.

She said the objective in Europe and on a global level has to be a cross-border regulatory and supervisory system appropriate for the Single Market.

We are not yet in a position to have a global regulatory system, but that does not absolve us from the responsibility to put in place regulatory systems around the world that are consistent and mutually reinforcing.

Kroes noted that temporary rescue measures are not enough for viability in the long term - because they do not ensure confidence or long-term growth.

We need to clean up the banks, she said.

Moreover, she noted that it should be ensured that the government aid is not used to prevent or postpone the painful, but unavoidable, reforms inside the banks.

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