Monday, 19 September 2011
As the Eurozone debt crisis threatens banks and potentially the global economy, former German central banker Axel Weber said he “fears” financial conditions will have to deteriorate more in Europe before leaders take “drastic action.”
Meanwhile, he said, “Europe needs to improve the probability of successful crisis management.”
Speaking at the Chicago Council of Global Affairs, Weber said policy makers need the political cover of an emergency to take action. “Things have to get worse before they get better,” he said. “If you act swiftly in the middle of a crisis people” appreciate the need for urgent action.
He described recent Greece bailout measures as “an attempt to kick the can down the road,” but added “If Europeans don’t react the markets will get worse. Pressure from the bond market is already there. Investors want to hear a convincing story why they should buy new bonds.”
Don Coxe discusses Weber's comments
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