Central banks cannot fix government inaction: ECB's Coeure
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Governments have a key role in solving Europe's sovereign debt crisis, and central banks can buy time but not take their place, European Central Bank Executive Board member Benoit Coeure said on Saturday.
The euro zone debt crisis has wrought havoc in the peripheral countries for three years, and the austerity-weary population is increasingly demanding an end to budget-balancing measures, seen as worsening the crisis.
A huge protest vote by Italians enraged by economic hardship and political corruption this week leaves slim prospects for a durable, reform-minded government in Rome, and election winner Beppe Grillo described Italy as "overwhelmed" by debt.
Coeure said, however, that there is no alternative for governments to reform and restoring sustainable public finances, and added that delaying reforms had costs attached to it.
"A central bank can help to mitigate the impact of the crisis, but the steps it takes cannot be a permanent substitute for resolute action by governments," Coeure said in a speech at Harvard University in Cambridge, Massachusetts.
read more ...