Crisis yet has not ended

Axel Weber: the economic forecast and the state finance were not stabilised, crisis yet has not ended.

Crisis yet has not ended, but the economic forecast and a condition of the state finance were decently enough stabilised, the representative of Operating council ETSB has declared today the Axel Weber.

"I yet do not speak about the crisis termination even if the economic forecast has improved, and the condition of the financial markets continues to be normalised", he has noted in the performance.

"The patient already left resuscitation, but its immune system is weakened, so relapse is not excluded".

Weber has noticed that the program of purchase of bond ЕЦБ while worked well, however "completely the situation with liquidity in the market was not stabilised yet".

The state measures of provision of economic incentives, and also automatic stabilizers have provided a strong impulse which has helped to normalise cumulative demand in an eurozone, the head of Bundesbank has informed.



"Nevertheless, a problem there is a fast and strong growth of a debt. We assume that the fiscal policy should return on a consolidation way as soon as economy restoration becomes steady".

He has warned the government of Germany that it will be necessary for it to return deficiency in limits of value of 3 % from gross national product which are provided by the Pact about stability and growth. Chancellor Angela Merkel earlier this week has declared that she expects falling of deficiency below 3 % in 2013 or 2014.

The head of the Central Bank has warned that "quickly growing" deficiency of the state finance in the long-term period becomes not only a burden for the capital markets, "but also danger to the monetary policy, сориентированной on stability".

He has noticed that state debt level in an eurozone as a whole will grow more than to 88 % from gross national product to 2011 from 66 % in 2007, according to Eurocommission calculations.

"Considering already high level of a debt, it is possible to assume that political pressure upon an eurozone will decently increase the next years".

Nevertheless, ЕЦБ has already proved that it is attached to the primary goal of preservation of price stability, Weber underlines.

He also has urged Deutsche Banks to finance more business with state support use. He has noticed that restoration секьюритизации in Germany would be as it is impossible by the way.
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