VIENNA (MNI) – Europe must solve its problems in order to ensure
stability, European Central Bank Governing Council member Ewald Nowotny
said Monday.
The head of the Austrian National Bank said in remarks to open a
conference on European Economic Integration that “it will be necessary
to find solutions for pressing problems at the European level in order
to maintain financial stability and regain fiscal strength.”
Nowotny avoided addressing current ECB policy.
Even if Central, Eastern and Southeastern Europe and Russia
“started out from higher GDP per capita levels than China, their growth
performance has still been remarkable,” he said. “The financial crisis,
however, has challenged the current growth models not only in these
regions.”
Nowotny continued: “While China has weathered the financial crisis
quite well, CESEE and Russia were directly hit. Despite these
differences, all three markets face common challenges both in the real
economy and in the financial markets, such as rising external imbalances
and decelerating external demand for goods, particularly in the face of
downward-revised GDP growth forecasts in many export destinations.”
Frankfurt bureau tel.: +49-69-720142. Email: dbarwick@marketnews.com
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