FRANKFURT (MNI) – The European Monetary Union was a victim of its
own success since underlying fiscal problems were masked by the strength
and low interest rates of the euro, European Union President Herman Van
Rompuy said in an interview with the Financial Times published Monday.
“The euro became a strong currency with very small interest rate
spreads,” Van Rompuy said. “It was like some kind of sleeping pill, some
kind of drug. We weren’t aware of the underlying problems.”
He pointed a finger at financial markets, saying they were “too
indulgent” during the first year and now “overact” often to “small
incidents.”
However, Van Rompuy also acknowledged that the markets allowed for
the identification of the weaknesses within EMU.
Van Rompuy also reiterated his comments from last Thursday that a
change in the treaty might be needed in the future, but did not put a
priority on it and was “personally not it favour” of such a move.
“There is no taboo on [changing the EU treaties],” Van Rompuy said.
“But for now we are working within the framework of the existing
treaties.”
–Frankfurt newsroom +49 69 720 142; e-mail: frankfurt@marketnews.com —
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