FRANKFURT (MNI) – European Central Bank Vice President Vitor
Constancio is “hopeful and optimistic” about the outcome of this week’s
EU summit in Brussels, he told reporters on the margins of an event here
on Thursday, stressing that its success lay with governments.

“As everyone else, we have seen how the ideas that have been
floating around,” he said following a speech.

“We expect that the summit will be able to take the appropriate
decisions to guarantee that the fiscal rules are strengthened
significantly and in a way that can guarantee their implementation. So,
that is the substance we are hoping for.”

Regarding economic growth, Constancio said that the ECB’s central
scenario was still one of positive, albeit modest, growth over the
medium term, though there were “substantial downside risks.”

Constancio also said that the ECB remained open to further
non-standard policy measures if they were required.

“There are many analysis in the markets that say that there are
risks of significant deleveraging by the banking sector. If that would
materialize, we would have to analyse the new situation,” Constancio
said, adding that current measures were sufficient.

“But, if the situation in the banking sector would deteriorate
further, then non-standard measures are there to address risks,” he

–Frankfurt bureau: 0049 69 720 142; email:

[TOPICS: M$$EC$,M$X$$$,MT$$$$,MGX$$$,M$$CR$]