Eurozone Still Sensitive to Finance, Economy Shocks
Eurozone Still Sensitive to Finance, Economy Shocks

Eurozone Still Sensitive to Finance, Economy Shocks

Eurozone Still Sensitive to Finance, Economy Shocks

The eurozone is still sensitive to finance and economy shocks, warns one of the most prominent economic representatives of the European Union, Jeroen Dijsselbloem. According to him, Greece and other countries need to undertake more reforms.
Jeroen Dijsselbloem, who will retire as chairman of the Eurogroup, which is the informal organization of eurozone finance ministers, says for the issue that the stability of the single currency depends on making labor markets more flexible than improving the functioning of capital markets. He also highlights the need for most of the work to be done by national governments, Finance Apprise reported.
“If there is an economic shock this year, many of European countries and the monetary union as a whole will not be prepared”, says the former Dutch finance minister. “As member states still carry the basic macroeconomic powers and authority, they must continue the pursuit of reform. This is the most important things”, he added.
Dijsselbloem does not oppose the idea of ??an enlarged role of the eurozone rescue fund in supporting countries that are hit by economic shocks. In his view, however, the drive to improve sustainability and competitiveness must be a priority in creating more support schemes for hurt member states.
During the term of Dijsselbloem, the Eurogroup managed the worst stage of the sovereign debt crisis and created the banking union–a project to restore faith in the stability of the financial system of the bloc.
“The achievements of the banking union are enormous”, he said. “We forced banks to really start clearing up the mess, reviewing their balance sheets, taking their losses, accumulating more provisions, selling their bad portfolios, coming out of the markets and raising new capital”, he added.
The main focus of Dijsselbloem was the fears for Greece debt whose  crisis reached its peak in 2015. According to him, although much has been said about Germany’s plans during the talks on rescue loans for temporary Grexit, in practice the countries of central and southeast Europe have lost most patience with Athens.
Dijsselbloem adds that he has never backed Greece’s exit from the eurozone, which would be “really devastating” and “a huge mistake”. Greece does not violate the EU’s budget rules and is about to leave its rescue program this year.

Short URL : https://goo.gl/uhPyF7
  1. https://goo.gl/mURfhp
  • https://goo.gl/GKk9vS
  • https://goo.gl/vovC94
  • https://goo.gl/Eoo3ai
  • https://goo.gl/9U5jG3

You can also read ...

Indonesia’s interest rate rise highlights need for urgent defensive action.
Argentina's return to financial chaos might seem remote to...
Pakistan Retains Stable Rating
Moody’s Investors Service said that Pakistan’s (B3 stable)...
Goldman Says US in Dire Straits
Goldman Sachs’ analysts delivered a weekend note on the United...
Real growth of the oil sector was  14.77% year-on-year in Q1.
Nigeria’s economy expanded for a fourth straight quarter in...
Investments by state enterprise rose 11.5% from a year earlier.
Thailand produced its fastest economic growth in five years in...
Taiwan Economic Sentiment Weakens
Sentiment toward Taiwan’s economy weakened in May after the...
Chan Chun Sing (L) and CEO of the Singapore Business Federation Ho Meng Kit,  at The Business Times Leaders Forum on Monday.
With the rise in unilateralism and protectionism, the...
Copper Edges Up
Copper edged higher on Monday after China and the United...

Add new comment

Read our comment policy before posting your viewpoints