Tags: ECB | Weber | Risk | Double-Dip | Recession | Negligible

ECB’s Weber: Risk of Double-Dip Recession Is ‘Negligible’

Thursday, 14 Oct 2010 08:04 AM

European Central Bank Governing Council member Axel Weber said the risk of Europe falling back into recession is minor.

“Having been hit hard by the financial crisis the European economy as a whole now is on a stable path toward recovery,” Weber said according to the text of a speech delivered this week in New York. “I am confident that the danger of sliding back into recession is negligible.”

The euro area economy exited the recession in the third quarter of 2009 and expanded at the fastest pace in four years between March and June. Even so, concerns remain that the so-called periphery countries may not be able to fix their public finances and grow sufficiently to repay their debt.

Irish gross domestic product fell 1.2 percent in the second quarter as consumers cut spending and import growth outweighed an increase in exports.

Weber also rejected calls for countries like Germany which run current account surpluses because of strong exports, to introduce policies that stimulate domestic demand.

The situation of surplus economies in the euro area is “not comparable” to that of some emerging markets, Weber said.

“Analogies between Germany and China may be fashionable, but are grossly misleading,” he said.


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European Central Bank Governing Council member Axel Weber said the risk of Europe falling back into recession is minor. Having been hit hard by the financial crisis the European economy as a whole now is on a stable path toward recovery, Weber said according to the text of...
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2010-04-14
 

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