The European Union will need more summits to resolve its debt turmoil and time is running out, although last week's deal was a significant step in resolving a crisis of confidence, the chief economist of S&P Europe said on Monday.

Let's not raise expectations too high, there will be more summits, the ratings agency's official Jean-Michel Six told a business conference in Tel Aviv. Time is running out and action is needed on both sides of the equation, on the fiscal and monetary side.

The agency, which placed 15 euro zone countries on watch for a potential downgrade ahead of Friday's summit, wanted to send a strong signal that the countries were facing significant risk of a major recession next year and a credit crunch, Six said.

There is probably yet another shock required before everyone in Europe reads from the same page, for instance a major German bank experiencing difficulties in the market, Six said. Then there would be a recognition that everyone is on the same boat and even German institutions can be affected by this contagion.

(Reporting by Tova Cohen; editing by Patrick Graham)