Europe should focus more on boosting economic growth and not be obsessed with reducing its public debt mountain, according to a leading EU banker. Alessandro Profumo, chief executive of Italy’s UniCredit, said Europe should be able to keep its financial difficulties “under control”.

“This significant public debt can be repaid only with more growth and, in order to have more growth, I think we cannot do it with debt,” Mr Profumo said. “We need more reforms and, for instance, more Europe, an integrated internal market.”

His comments reflect a large concern of businesses across the continent that Europe’s growth might be harmed by too big a focus on reducing debt. – Copyright The Financial Times Limited 2010