SEOUL (MNI) – The global economic recovery is here to stay but it
is also at risk as a result of financial market fragility and the end of
fiscal stimulus cycles, Financial Stability Board Chairman and Bank of
Italy Governor Mario Draghi said here Friday.
“It’s not going to be a strong recovery in the short- to
medium-term,” he told reporters at a briefing on the sidelines of an FSB
meeting here.
“The current recovery is subject to a variety of risks. One is the
stimulus coming from fiscal programs and various countries, but cycles
have run their course (and) financial markets remain fragile as you can
see from the volatility.”
Netherlands Bank President Nout Wellink told the same briefing that
talk of an economic “double dip” is both irritating and irrelevant and
that his concerns are for the medium- to long-term rather than anything
more immediate.
“Economies have to go through a very fundamental adjustment and the
political context will become very difficult more so than in the past,”
he said, adding that outstanding issues include whether or not
government finances will be successfully consolidated.
Draghi said that “a very elaborate time table” for new liquidity
and capital requirements for financial institutions will be ready by
November’s Group of 20 summit here, though a complete blueprint will
not be presented then.
“We have a very elaborate time table that will be coming out in the
following months,” he said.
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