Italy's economy is fundamentally sound and should be able to win back market confidence if it shows fiscal discipline, European Central Bank member Christian Noyer said on Monday, ruling out a collapse of the euro zone because of the sovereign debt crisis.
Noyer, also Bank of France governor, said he could not comment on reports that Italy was talking to the International Monetary Fund about possible support if investors continue to push up its borrowing costs.
The euro, under selling pressure for weeks, rose on Monday on reports that debt-strapped Italy could turn to the IMF as a lack of consensus hampers Europe's response to its debt problems which threaten to undermine the global economy.
"Italy should not be considered a weak economy," Noyer told reporters in Tokyo.
"A breakup of the euro zone is out of the question. There is no plan B."
http://www.moneycontrol.com/news/world-news/italy-not-weak-euro-breakup-outquestion-ecb_625222.html
ECB may be the last one standing on field of ruins
Commentary: In this game of chicken, no one wants to blink first
Noyer, also Bank of France governor, said he could not comment on reports that Italy was talking to the International Monetary Fund about possible support if investors continue to push up its borrowing costs.
The euro, under selling pressure for weeks, rose on Monday on reports that debt-strapped Italy could turn to the IMF as a lack of consensus hampers Europe's response to its debt problems which threaten to undermine the global economy.
"Italy should not be considered a weak economy," Noyer told reporters in Tokyo.
"A breakup of the euro zone is out of the question. There is no plan B."
http://www.moneycontrol.com/news/world-news/italy-not-weak-euro-breakup-outquestion-ecb_625222.html
ECB may be the last one standing on field of ruins
Commentary: In this game of chicken, no one wants to blink first
LONDON (MarketWatch) — Who will blink first? In games of chicken on railway lines, at least one chicken ends up decapitated. The triple stand-off between the European Central Bank, European governments and the financial markets is building up to a new pitch.
We appear to be heading for a re-run of the fateful times nearly 20 years ago — at the height of the September 1992 exchange rate mechanism crisis — when President François Mitterrand browbeat Chancellor Helmut Kohl into urging the Bundesbank, after much tergiversation, to defend the French franc. If the Bundesbank had its way in remaining on the sidelines while the markets sold down the franc, Mitterrand told Kohl, the Bundesbank would be “the last one standing on a field of ruins.”
http://www.marketwatch.com/story/ecb-may-be-the-last-one-standing-on-field-of-ruins-2011-11-28
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