–Rules Out Spain Bailout For Time Being – Says Await Reform Results
LONDON (MNI) – European Central Bank Governing Council member Ewald
Nowotny has said that the ECB can act in a “very forceful way” if
needed.
“It is the policy of the ECB never to precommit but as we have
shown in the past, If necessary, we can act in a very forceful way,”
Nowotny said in an appearance on CNBC.
His comments followed some weak readings for flash PMIs in April
for Germany and euro zone.
Nowotny also said that the structural reforms undertaken by Spain
should be enough to prevent Madrid from having to seek a bailout from
the euro zone stability fund and the IMF.
“For the time being I don’t see this (a bailout) because Spain is
exactly a matter in point where very substantive structural changes have
been undertaken. There have been changes in the labour market, reforms
in the fiscal systems, reforms which regard the fiscal systems of the
provinces. I would say that in half a year’s time, at the end of this
year, the results will show,” Nowotny said.
–London newsroom: 4420 7862 7492; email: ukeditorial@marketnews.com
[TOPICS: M$$EC$]
