Mr. Mark Carney, top central banker in Canada and the incoming governor of the Bank of England, said in a statement that without `sustained and significant reforms', Europe is in state of stagnation from last ten years. He further added that the Europe can take even half of lessons from Japan on tackling the dangers.

Carney is of the view that Europe is facing the problem of global financial crisis from around six years but is still caught up in recession, fiscal austerity, low confidence and tight credit conditions which is restricting itself of any economic activity.

As the governor of the Bank of Canada, Mr. Carney was quoted as saying, "This fragmentation has reinforced the links between sovereign and bank solvency. As European leaders now recognize, without major reforms to create a banking union, the European Monetary Union is fundamentally weakened".

Carney suggests that one of the building blocks of European fiscal federalism in the medium term could be an employment insurance scheme that should be focused on common European labor market. He further adds that with this step, the obstacle for those people who want to work across the continent will be reduced but also provide a cross-country automatic stabilizer.