LONDON (MNI) – Bank of England Monetary Committee Member Adam Posen
has said that he does not expect the euro to break up as a result of the
sovereign debt crisis currently sweeping the continent.
“I am assuming the euro is here to stay,” Posen said in a speech at
the London School of Economics.
“The question is – how miserable are we going to make people,” he
added.
The crisis in the euro zone was not a fiscal one but one of
economic imbalances, he added.
Posen criticised the new fiscal compact agreed by EU leaders,
saying that this was too skewed towards fiscal consolidation.
“At its core it is an imbalance crisis not a fiscal crisis,” Posen
said.
Measures and institutions were also needed to lift demand in the
euro core, Posen said.
–London newsroom: 4420 7 862 7492; email: dthomas@marketnews.com
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