Euro Will Be Here Forever: ECB’s Weber

The European Central Bank will start phasing out the measures it took to boost liquidity at the height of the crisis and it cannot cater to the needs of individual countries with problems, Axel Weber, ECB governing council member, told CNBC Wednesday.

[mserve id=”Central_Bank_ECB.jpg” align=”left” width=”291″ caption=”European Central Bank” alt=”European Central Bank ECB” title=”European Central Bank “]

“It is the normalization of our liquidity framework. We cannot take in our decisions developments in certain parts of the Union, because we do not have tools for that,” Weber told “Squawk Box Europe.”

But the economy is still not standing on its own feet, so fiscal and monetary expansionary measures must be withdrawn only gradually, he added.

Critics of the European Monetary Union said the euro’s straightjacket was hurting weaker members such as Greece, Ireland and Portugal, which struggle with high debt and weak growth and that they could benefit from a looser monetary policy.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza