–Adds Comments On German Ban on Uncovered Short-Selling
FRANKFURT (MNI) – Recent fiscal decisions taken by EMU governments
have helped stabilized market conditions, but their implementation
remains a key test for a lasting solution, European Central Bank
Governing Council member Nout Wellink said Thursday.
Decisions by Spain and Portugal to frontload their fiscal
consolidation are “extremely important,” the Dutch central bank governor
told Market News International on the sidelines of a conference here to
honor departing ECB Vice President Lucas Papademos.
“I think the decisions that have been taken have stabilized the
situation, but follow-up is at least as important,” Wellink said. “It is
also a very important part.”
“Spain and Portugal have taken decisions to frontload and
accelerate their consolidation efforts and that is, I think, extremely
important,” he said.
“What we see is that policies are on the right track now,” he said.
Regarding the recent slide of the euro exchange rate, Wellink said
it was best to look beyond short-term “immediate” market reactions.
Asked later by reporters about Germany’s surprise move this week to
ban uncovered short-selling of a variety of stocks, bonds and default
swaps, Wellink stressed the need for coordination.
“Germany should have consulted and done it together with the
others” he said. “Going alone was not very helpful.”
–Frankfurt bureau; +49-69-720142, frankfurt@marketnews.com
[TOPICS: MGX$$$,MT$$$$,M$$EC$,M$X$$$]
