ISTANBUL
Ali Babacan said there could be economic risks in France if right steps were not taken.
"We expect the new government to take economic steps for the stability of Europe and France as soon as possible," Babacan said during a conference in Istanbul.
Babacan's remarks came after recent elections in Greece and France. Socialist candidate Francois Hollande won the second round of the French presidential election by gaining 52 percent of the votes.
On Greece, Babacan said not only this country but also other European countries that were facing problems should make reforms and take steps for their budgets and debt stock.
"We should also see a solidarity in the Euro zone. Euro zone countries should not be left on their own," Babacan said.
Babacan expressed thought that every Euro zone country should make its homework on time, and said Europe was talking about a new financial consolidation.
"There are serious arrangements on one hand, and they can hamper expected growth for a long time. Therefore, everybody has to be careful," he said.
Babacan said collapse and bankruptcy of a European country had a much more higher cost than saving that country.
"Therefore, no country in the Euro zone should be left alone, and let to bankrupt," he said.
Moreover, Babacan said that direct capital inflow in Turkey continued, and 12 banks had been allowed to open representations in Turkey in the last three years, which indicated that international rating organizations were behind developments and progress of Turkey.
S&P said Tuesday it cut outlook on Turkey's long-term foreign and local currency sovereign credit ratings to stable from positive due to "less-buoyant external demand and worsening terms of trade [which] could inhibit Turkey's economic rebalancing."
