WASHINGTON (MNI) – European Central Bank Executive Board member
Lorenzo Bini Smaghi Monday told CNBC that if needed, the crisis safety
net “should be increased.”

Bini Smaghi told interviewer Steve Liesman, who asked if the ECB is
concerned about the euro, that, “We are taking the right decisions.” He
added, “There is an issue about confidence which is a global issue. But
clearly the euro is young, so it has been tested more than others.”

Asked about concerns regarding the size of the safety net, Bini
Smaghi replied, “We have shown we can create a safety net sufficient to
address the situation. For now there is enough money to address the
problems.”

About the IMF’s judgment it should be increased, he said, “For now
we’re using only a part. But if needed, it should be increased, of
course.”

Is the ECB willing to do more if the fiscal authorities do more?
Bini Smaghi said, “We are doing a lot already. I think we are
implementing our policies and the stability of the euro is a key
objective.”

He continued, “We have implemented monetary policy to ensure price
stability and if you look at the average of 10 years is slightly below
2%, so we are on target. and we continue to do the attempt. We have to
make sure the governments’ taking on responsibility and we will do our
part.”

Americans are always seeing fresh and concerning Europe news and he
was asked if this is going to continue to be the case. “The euro news
makes the news because,” Bini Smaghi replied, “it’s 16 countries talking
to each other. Sixteen parliaments, 16 governments.”

And so, “the markets get very nervous,” he continued. “So it’s very
difficult to distill the right news from the noise. But I think the
right news is that governments are committed to put their own house in
order, to have the system survive this crisis.”

Looking back, he said, “If you take the decisions which have been
taken over the last six months, nine months, they have been late, they
have been clumsy but they have been taken and have been taken in the
right direction. So,” he concluded, “I think if you had to extrapolate
the trend, I think it’s a trend towards more stability.”

** Market News International Washington Bureau: 202-371-2121 **

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