Back
22 Dec 2015
Eurozone: “Seeping pessimism” is an increasing political risk - Rabobank
FXStreet (Delhi) – Research Team at Rabobank, notes that in an interview with Belgian newspaper La Libre Belgique, the ECB’s Peter Praet said that “seeping pessimism” is an increasing political risk in the Eurozone.
Key Quotes
“Even though he found that there is still considerable support for the common currency, the push for greater European integration is, to some extent, still rejected. This exposes the risks resulting from the weaknesses of an incomplete monetary union, which is of course still a lingering issue that could suddenly return.”
“Later on in the interview, he continued to lash out against the euro area’s politicians, as he sees that increasingly less is being done on public finances, whereas (or because?) the ECB remains pursuing loose monetary policy for “as long as is necessary”, particularly as additional risks have risen from the slowdown in emerging markets and downward price pressures in the manufacturing sector remain.”
Key Quotes
“Even though he found that there is still considerable support for the common currency, the push for greater European integration is, to some extent, still rejected. This exposes the risks resulting from the weaknesses of an incomplete monetary union, which is of course still a lingering issue that could suddenly return.”
“Later on in the interview, he continued to lash out against the euro area’s politicians, as he sees that increasingly less is being done on public finances, whereas (or because?) the ECB remains pursuing loose monetary policy for “as long as is necessary”, particularly as additional risks have risen from the slowdown in emerging markets and downward price pressures in the manufacturing sector remain.”