–Adds Comments On Price Stability, Budget Consolidation
FRANKFURT (MNI) – The Eurozone is not in a currency crisis, but
rather in a crisis of public finances, European Central Bank Executive
Board member Juergen Stark said Thursday.
“I would like to make it clear that we are not in a crisis of the
euro,” Stark said in a conference on the future of the single currency.
“It is not a currency crisis,” he insisted. “Rather we find
ourselves in a crisis of confidence in public finances.”
Asked about the current euro exchange rate, Stark replied, “I can’t
say anything about that.” Rather, he reiterated that the central bank
has a clear goal, which is price stability. He said the ECB “has
delivered what it promised” to Europe’s citizens.
Stark also said there is “no alternative to the consolidation of
public finances” for European countries. Furthermore, he urged that
there be “tougher” supervision of economic policy.
He repeated the bank’s standard line that the purchasing of
government bonds is neither “monetary easing” nor the financing of
governments.
A common Eurobond would not be in line with the EU treaty, Stark
reiterated.
–Frankfurt bureau; +49-69-720142, tbuell@marketnews.com
[TOPICS: M$G$$$,M$EC$$$,MGX$$$]
