BERLIN (MNI) – European Central Bank Executive Board member Juergen
Stark Tuesday called for closer European integration.
“All in all, a lesson to take from the current sovereign debt
crisis is that there is an undeniable tension between, on the one hand,
the need for financial integration to ensure a smooth functioning of
Monetary Union, and, on the other hand, micro-prudential and fiscal
competencies that have remained at the local level,” Stark said in
remarks prepared for delivery at a Bundesbank conference.
“And this tension has the potential to exacerbate the risk of
future financial crises and hinder effective crisis management,” the
Governing Council member warned.
“We need bold steps towards a fiscal union,” he stressed. “We need
to go beyond and create a financial union. In one word, the crisis has
clearly shown us that we need more Europe,” he said.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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