- ESM direct recaps is a useful anti-contagion backstop but use for SRM would require a treaty change
- Markets rewarding fiscal cuts in aid nations
- Unemployment has finally stabilised in beneficiary countries, but still at high levels
- Exports in Spain are growing at healthy rate
- Greece is stabilising, but is the most difficult case and is likely to need additional help
He’s speaking at an EU parliamentary committee.
Nowotny was also out with another line that rate hikes may only have an effect post non-standard measures
Euro dipping on yet more confirmation of another Greek bailout, that treaty changes may be needed to bring in the almighty backstop and Nowotny’s comments on rates.
