By Johanna Treeck
Brussels (MNI) – Banking and sovereign debt problems in Ireland do
not pose an immediate threat to the stability of the Eurozone, Austrian
Finance Minister Josef Proell told Market News International on
Thursday.
However, Proell said it is too early to predict whether the
debt-troubled country might have to tap the E440 billion European
Financial Stability Facility.
“I see no immediate danger for the Eurozone,” Proell said.
He noted that European finance ministers are currently awaiting the
detailed report by their Irish counterpart and that this report “should
give a clear indication of the direction in which Ireland is moving.”
While the information currently available suggests the situation is
“manageable,” Proell would not exclude the possibility that Ireland
might have to ask neighbours for financial support.
“We will see what the minister presents on the banks and the impact
those plans will have on public deficits. Before that, I will not
comment [on the likelihood of Ireland taping the EFSF],” Proell said.
Closer to home, Proell said that the Austrian economy continues to
“perform well.” The economic recovery continues and Austria is on track
to meet the Maastricht deficit criteria of 3% by 2013, he noted. “We are
working on this under higher pressure,” he said.
Austria has outperformed the Eurozone’s recovery along with Germany
but Proell did not share concerns voiced by German Economy Minister
Rainer Bruederle that ECB interest rates are too low for the stronger
Eurozone members,
“I have no criticism of the interest rate and monetary policy of
the ECB,” he said.
–Frankfurt newsroom +49 69 72 01 42; Email: jtreeck@marketnews.com
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