Amid concern in financial markets that the debt crisis could break apart the euro zone, European Central Bank President Jean-Claude Trichet warned of contagion dangers and called for more action by euro-zone governments to pool fiscal governance.
“We are now experiencing extreme tensions,” Mr. Trichet said in an interview with Germany’s Der Spiegel magazine. The ECB provided a transcript Saturday.
“In the market, there is always a danger of contagion””like the contagion we saw among the private institutions in 2008.” Mr. Trichet said. Contagion can flare up quickly, he said, even in “half a day.”
What’s needed now, Mr. Trichet said, is “a quantum leap” in how Europe manages its fiscal economy, which he says in the most difficult situation since World War II.
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Trichet Pegs Euro's Future to Tighter Fiscal Management
Amid concern in financial markets that the debt crisis could break apart the euro zone, European Central Bank President Jean-Claude Trichet warned of contagion dangers and called for more action by euro-zone governments to pool fiscal governance.
“We are now experiencing extreme tensions,” Mr. Trichet said in an interview with Germany’s Der Spiegel magazine. The ECB provided a transcript Saturday.
“In the market, there is always a danger of contagion””like the contagion we saw among the private institutions in 2008.” Mr. Trichet said. Contagion can flare up quickly, he said, even in “half a day.”
What’s needed now, Mr. Trichet said, is “a quantum leap” in how Europe manages its fiscal economy, which he says in the most difficult situation since World War II.
Read it all.