Main focus of Friday, December 3, 2010

Central Bank cannot solve euro crisis on its own

The European Central Bank has dropped the prime interest rate to an all-time low and will continue to purchase the government bonds of indebted states, ECB President Jean-Claude Trichet announced on Thursday. But the onus is above all on national governments to solve the euro crisis, writes the press.

Der Standard - Austria

The responsibility for resolving the euro crisis lies not with the European Central Bank but with the leading politicians, the left-liberal daily Der Standard writes: "The combination of exorbitant debt and low growth as a result of forced austerity measures will torpedo all the plans. The extension of Greece's credit instalments is a clear sign of this. Consequently the loans need to be restructured quickly. US economist Kenneth Rogoff has already argued in favour of a Brady Plan for the euro, named after former US Secretary of the Treasury Nicholas Brady. The Brady Plan put an end to Latin America's debt crisis in the 1980s. As embarrassing as it may be for the Eurozone: since this step needs to be taken anyway it should be taken now." (03/12/2010)

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All available articles from » Andreas Schnauder

El País - Spain

Banks will be able to borrow money from the European Central Bank at low interest rates at least until March 2011. The left-liberal daily El País approves of the decision announced on Thursday by ECB President Jean-Claude Trichet: "The ECB does well to continue its exceptional liquidity injections and warn buyers of government bonds. Trichet's analysis that the Eurozone needs more integration is also correct. The economic union of the euro countries is the correct path. The wrong path is integration at different speeds. However the ECB's position doesn't spare governments from taking decisions to guarantee the liquidity of their state finances." (03/12/2010)

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Financial Markets, » Banks, » Europe

Delo - Slovenia

European Central Bank President Jean-Claude Trichet has called on governments to boost confidence in their finances. The daily Delo sees the rich countries as bearing the brunt of the responsibility here: "Solidarity motivated by self-interest is the slogan of those Germans who are convinced that the single currency must be saved at all cost. To ensure that the price isn't too high the European Union must tackle the fundamental issues that are causing the current problems. These include the question of irresponsible spending in Greece & Co. as well as the huge imbalances within the monetary union. If only the weak are forced to carry the burden of re-balancing with stringent austerity measures this won't solve the problem. To prevent the imbalance within the Eurozone from becoming even greater the rich and stable countries must also adjust. ... The euro was created as a political project, and therefore the euro must be saved above all with political will." (03/12/2010)

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More from the press review on the subject » Fiscal Policy, » Financial Markets, » Europe
All available articles from » Peter Žerjavič

The Irish Times - Ireland

Although experts may disagree over the solution to the financial crisis, the danger for the euro is clear to all, writes the liberal daily The Irish Times: "According to the ECB, euro zone banks took losses of 515 billion euros between the onset of the crisis and mid-2010. These losses have blown a hole in the foundations of the European financial system. ... It is clear, having bailed out two of the 16 euro zone countries to prevent their default, that rescuing the weak will not be enough now that the currency is in contagion's iron grip." (03/12/2010)

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More from the press review on the subject » EU Policy, » Fiscal Policy, » Economic Policy, » Europe
All available articles from » Dan O'Brien

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