Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Dow Jones Industrial Average : Europe must act strongly to tackle crisis: OECD

08/31/2012 | 08:41pm US/Eastern
Recommend:
0

Backing bond market intervention by the European Central Bank, the OECD said on Friday that Europe must seize a "window of opportunity" offered by the relative recent calm of financial markets to tackle the simmering euro zone debt crisis.

"I think it is now time that the European authorities push strongly toward a solution," said Pier Carlo Padoan, chief economist of the Paris-based Organization of Economic Cooperation and Development.

The OECD represents a respected outside voice on how best to tackle the 2-year crisis, and his comments come just days before the ECB meets to weigh controversial bond market purchases.

Padoan said the OECD had been braced for a very rocky August for euro zone financial markets, particularly for Spanish and Italian bonds, but this volatility had not emerged and stock markets were in fact now stronger.

"It is time to exploit what seems to be a credit-opening from markets on the European situation, so it is very important that authorities exploit this window of opportunity," he told Reuters in an interview.

Padoan, speaking on the sidelines of the annual Jackson Hole policy retreat hosted by the Kansas City Fed, also made clear his support for bond-market buying by the European Central Bank.

With less than a week to go before the ECB could decide to intervene directly to prop up Spanish and Italian bond markets, Padoan said he did not believe the wide bond spreads of weaker southern European nations reflected economic fundamentals, but rather the fear that the euro zone could break up.

"If that is correct, then the response to that spread has to deal with reassuring markets that the euro zone will not break up, in addition to the fact that those countries must continue with their structural adjustments," he said.

"So intervening in bond markets, it is a very important temporary backstop to a wider strategy," he said. "If the ECB comes up with proposals that provide concrete content to the ideas about support of bond markets, that would be extremely important."

The ECB meets on September 6 to review a plan to buy Italian and Spanish bonds in order to win breathing space for euro zone leaders to figure out a longer-term response to the euro zone's sovereign debt woes.

The plan has met stiff opposition from Germany's Bundesbank, whose president, Jens Weidmann, was also attending the conference in Grand Teton National Park in Wyoming. Weidmann declined to comment to reporters here about a German press report that he had considered resigning over the issue.

(Reporting By Alister Bull; editing by Todd Eastham)

By Alister Bull

Recommend :
0
React to this article
Latest news
Date Title
<1m ago ROLLS ROYCE : V-22 flight tests validate ‘hot and high’ capability for Rolls-Royce AE 1107C engines
<1m ago UNISYS : NUL Group Extends IT Support Services Contract with Unisys
<1m ago MERMAID MARITIME PUBLIC : Awarded Subsea Contracts In Middle East With Estimated Value Up To Usd45 Million
<1m ago TASCA RESOURCES : Closes non-brokered private placement financings
<1m ago SULZER : Confirms Discussions with Dresser-Rand Regarding Potential Transaction
<1m ago EVERYDAY HEALTH : Shines Light on Innovators at Biggest Global Tech Conference, International CES®
1m ago USELL : Receives Coverage as a Potential eBay Buyout Candidate
2m ago RESEARCH AND MARKETS : Analysis Of The Fruits And Vegetables Sector In GCC Countries: With The Production, Consumption, Import And Export Data 2004-2014
2m agoDJDollar Hits Y107.58, Highest Since September 2006
4m ago HUMBOLDT CAPITAL : Announces Normal Course Issuer Bid
Latest news
Advertisement
Hot News 
AFRICA OILFIELD LOGISTICS : Secures Land Lease in Northern Kenya
ULTRASONIC : Germany-listed Ultrasonic says top China executives missing, cash gone
Endo offers to buy Auxilium Pharma for about $2.2 billion
APOGEE ENTERPRISES : Results of Operations and Financial Condition, Financial Statements and Exhibits (form 8-K)
E I DU PONT DE NEMOURS : DuPont Photovoltaic Solutions and Yingli Solar Collaborate on China Solar Power Project
Most Read News
1d ago ADOBE SYSTEMS : revenue forecast misses, shares slip
1d ago BARCLAYS : N.Y. says Barclays move to toss fraud case should be denied
1d ago RAYTHEON : House Ways and Means Committee - Hearing
1d ago DELTA AIR LINES : announces Los Angeles-San Antonio nonstop flights, starting in April
49m ago SAMSUNG ELECTRONICS : IPhone emerges from 'bygone era', reviewers hail bigger handset
Most recommended articles
2m agoDJDollar Hits Y107.58, Highest Since September 2006
5m ago UK trade deficit wider on illegal drug imports - ONS
7m ago FEDEX : sees e-commerce driving record holiday season
7m agoDJTECH STOCKS : Adobe, Rackspace Losses Take Tech Spotlight
8m ago ELECTRA PRIVATE EQUITY : Activist Bramson targets Electra revamp in letter to shareholders
Dynamic quotes  
ON
| OFF