– Adds Comments on European Banking Supervisor
JOEY EN JOSAS, France (MNI) – Benoit Coeure, European Central Bank
Executive Board member, said Friday that the ECB’s intervention in bond
markets will be based on strict conditionality and will be focused on
the short end of the market.
Coeure, speaking to a meeting of business executives here, said the
conditionality should be based on an official request for aid from
Europe’s bailout funds, the EFSF and the ESM. He said the ECB “continues
to study” the intervention plan and did not provide further details.
Coeure reaffirmed, however, that the ECB “will do everything
possible” to preserve the euro. “You cannot have Europe without the
euro,” he said.
The euro remains under threat because of doubts about its long-term
durability, rather than because of financial speculation, he said.
“The integrity of the euro is under threat,” Coeure said, adding
that European capital markets are still not functioning normally despite
the ECB’s efforts to supply liquidity.
Creating a single central European banking supervisor is essential
to strengthen confidence in European banks and to spur an eventual
increase in bank lending, he said.
–Paris newsroom; +33142715540; jduffy@mni-news.com
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