ECB managing board member Bini-Smaghi says the euro zone needs an emergency mechanism as a last resort to deal with situations like Greece.
That said, the challenges facing the euro zone are not worse than those facing the US or Japan, he says.
Ministers acted too late and haven’t been strict enough with Greece. The Stability and Growth Pact should be stricter and fixed, he says.
Markets are testing the euro zone decisiveness over Greece, Bibi-Smaghi observed.
The Euro will survive and no country will want to get rid of it, he says.
He says it is wrong to bring the IMF into the picture when the Stability Pact did work as intended.
The eurozone needs a financial mechanism to be ready for an attack on the euro, he says.
What about of attacks from within, Lorenzo?
Not much reaction to the comments as the market grows tired of the whole sordid affair of European sausage-making… I do get a kick out of Bini-Smaghi’s comments on European decisiveness. This episode has shown anything but…
