Next crisis could threaten Eurozone cohesion: ECB warns
(VOVWORLD) - The euro single currency area must shore itself up with reforms or face renewed threats of breakup when a new economic crisis strikes, European Central Bank (ECB) board member Benoit Coeure told a conference in Ljubljana, Slovenia, on Friday.
 ECB warns that next crisis could threaten Eurozone cohesion |
Coeure cited a report by the statistic agency Eurostat that GDP growth last year surged to its fastest pace in a decade at 2.5%.
Mr. Coeure outlined 3 lines of defense that policymakers should fortify to brace the Eurozone against future shocks: Financial and service industry markets should be more closely integrated across Europe to better absorb potential blows without calling on taxpayer funds, governments must create fiscal space, and the Euro area needs a fiscal instrument that can help it cope with large shocks without having to rely excessively on the ECB.