ECB Member Says Eurozone on The Mend But Not Out of Crisis

November 29, 2013 Share Print 0

The euro zone is early on its climb out of economic crisis but it is on the right track, ECB Executive Board member Yves Mersch said on Friday.

“The euro area is early on in the climb out of the crisis. The summit is still far and covered in fog,” Mersch said in the text of a speech for delivery at Frankfurt’s Goethe University.

“Evident pitfalls are between us and the rewarding view from the mountain top. These pitfalls are competitiveness, deleveraging and institutional barriers. But at the same time I believe we are on the right track,” he added.

On the treatment of sovereign bonds by banking supervisors, Mersch said that in the medium term “it makes sense from a prudential point of view that assets are being weighted according to their riskiness and not according to conventions which might not reflect reality.”

But he added that this should be coordinated at an international level by the Basel Committee for Banking Supervision.

via Reuters

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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.