FRANKFURT (MNI) – The situation on the financial markets is not as
bad as after the Lehman bankruptcy but political action to calm markets
is urgently needed, European Central Bank Governing Council member Ewald
Nowotny said Tuesday in an interview with Austrian radio ORF.
Asked whether a comparison to Lehman were warranted, Nowotny said
that he “would not say so” but observed “that there are certain
parallels, such as increasing caution by banks to lend.” The rising
amounts that banks deposit at the ECB are not a good sign, he said.
Nowotny urged governments to implement planned crisis-fighting
measures and execute austerity plans as quickly as possible to calm
nervousness on financial markets.
“All countries of Europe, and some more than others, must work to
bring their public finances into a situation that is sustainable over
the long term,” Nowotny said.
-Frankfurt Bureau tel.: +49-69-720 142, email: frankfurt@marketnews.com
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