FRANKFURT (MNI) – The current crisis poses a big challenge to the
Eurozone but the area has proven resilient, European Central Bank
Governing Council member Carlos Costa said Thursday.
Portugal is very committed to pressing ahead with fiscal
adjustments and structural reforms urgently needed to further strengthen
the region and ensure sustainable growth, the head of the Portuguese
central bank said in a speech here.
“The crisis has profoundly challenged the European economy and the
process of European integration,” Costa said.
“I want to stress that the global crisis has proven the rigidity of
the European Central Bank and the Eurosystem in adverse circumstances,”
he said.
He observed that the ECB has proven to be both “flexible” and able
to “deliver what citizens are asking for.” In particular, the ECB has
ensured price stability and fulfilled its firm commitment to meet its
mandate, and has kept inflation expectations firmly anchored even when
inflation turned negative during the course of the crisis.
“The fiscal adjustment through austerity” is “urgent” and the
target must be an almost balanced budget over the medium term, he urged.
“You can be sure that the government of Portugal is very, very keen
to underline the importance of this medium-term stability and this
fiscal adjustment,” Costa assured.
“You can be assured that Portugal is very committed to do what is
necessary in order to be part of this important club” of the Eurozone,”
he added.
–Frankfurt bureau; +49-69-720142, frankfurt@marketnews.com
[TOPICS: M$G$$$,M$EC$$,MFX$$$,MGX$$$]
