Wilbur Ross, the U.S. billionaire and major shareholder of Bank of Cyprus said Europe’s stress tests fixed only one of the region’s problems.

“The fear that people had had was that there would be another meltdown in the finance sector, which would drive the rest of Europe into some sort of severe recession,” he said in an interview from New York to Bloomberg today.

“I don’t think anybody would anticipate that any longer, but that doesn’t mean that all the problems of Europe have been solved”, he stressed.

According to Mr. Ross, officials still need to tackle sovereign debt and embrace economic change, including more flexible labor laws.

Ross, who, according to Bloomberg, made a 500 million-euro profit on his investment in Bank of Ireland and has invested in Greece’s Eurobank Ergasias SA (EUROB) and Bank of Cyprus Pcl, said the tests should put at rest concerns that the region’s banks still pose a threat to the economy.

“Overall, they accomplished what they needed to, in that last time there was fairly universal criticism that they were not severe enough and I don’t think that anyone feels that about this go-round,” Ross said. “I think these stress tests had a lot of credibility to them”, he concluded.