FRANKFURT (MNI) – The European Central Bank’s monetary policy is
calibrated for the entire monetary union and cannot focus on individual
EMU states, ECB Governing Council member Marko Kranjec told the Wall
Street Journal.

“National differences are a question that influences the averages,
but we are never discussing the differences in growth rates and policies
in the euro area countries,” the head of the Bank of Slovenia said in an
interview published Thursday.

Kranjec’s comments echo those of ECB President Jean-Claude Trichet
earlier this year that the central bank would not make allowances “for
the sake of any particular country” — shortly before announcing that
Greek debt would be accepted as eligible collateral, despite falling
below the ECB’s acceptable level.

Turning to the topic of austerity measures, the Slovenian central
banker agreed that such action was necessary to regain confidence.
Growing public debt “has been a considerable problem for long-term
confidence in sovereign solvency in some countries not only on this side
of the Atlantic, but also on the other side,” he said.

Kranjec signaled mounting pipeline price pressures in the Eurozone,
saying higher commodity prices pointed to “an upside risk to inflation

–Frankfurt bureau tel.: +49-69 720142. Email:

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