–ECB Weber: Double Dip Not ECB’s Main Working Hypothesis
–ECB Weber: Situation In Greece Is Improving
COPENHAGEN (MNI) – The Eurozone economy is “clearly out of
recession” but the recovery will likely be a “bumpy road,” ECB Governing
Council member Christian Noyer said Monday at a panel discussion here.
Fellow Governing Council member Axel Weber said at the same event
that a double dip recession in the Eurozone was not the main working
hypothesis of the ECB. Rather, it expects a continued moderate recovery.
Yet, Weber acknowledged that “we have to take account [of the fact]
that there exist risks” of a setback at the global level, a credit
squeeze or renewed tensions on financial markets.
Still, “we don’t expect a new round of tensions on financial
markets now,” he stated.
Weber reaffirmed that the gradual phasing out of extraordinary
liquidity measures by the ECB “is an ongoing process.”
Turning to the situation in Greece, Weber said it was encouraging
that the head of the Greek debt management agency had said the country
didn’t have problems refinancing itself.
“The situation in Greece is improving,” Weber remarked. Given that
aid for the country would be needed only in case of an emergency, there
is no need to think about it at the moment, he argued.
Asked about the notion that Greece could temporarily leave the
eurozone, Noyer replied: “I never comment on absurd hypothesis, which I
think this is.”
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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