FRANKFURT (MNI) – There is no choice but to cut public debts in
Eurozone member states lest the debt levels explode, European Central
Bank Executive Board member Juergen Stark told Euronews in remarks
published Tuesday.
Stark, who has announced his resignation from the ECB and is
awaiting the appointment of his successor, told Euronews on the margins
of an appearance before EU Parliament on Monday that “we cannot go on
running high budget deficits in several Eurozone countries each year,
the debt level is going to explode.”
“This is a burden for further generations, it is a burden for the
economy in the future,” he continued. “For all these reasons there is no
alternative to reducing the debts.”
“It is not enough to recapitalise the banks,” Stark affirmed. “A
lot of things should be done. First of all we do need to send a signal
of credibility to the markets. We should show that we are ready to solve
the budget problems. It is not enough to make announcements, we should
put measures into practice.”
–Frankfurt bureau tel.: +49-69-720142. Email: dbarwick@marketnews.com
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