Deutsche Bank chief plays down EU debt fears

16 November 2010

Deutsche Bank chief executive Josef Ackermann has dismissed suggestions that Europe could be hit by a fresh wave of sovereign debt crises, amid economic turmoil in the Republic of Ireland.

Speaking to Bloomberg, Mr Ackermann insisted that the EU rescue fund is sufficient for "all emergencies", but acknowledged that markets had been destabilised by uncertainty relating to countries' ability to tackle fiscal deficit problems.

He added that some clarification over whether bondholders would be obliged to cover the cost of similar financial worries after 2013 had been too slow in coming, leading to some misunderstandings.

Mr Ackermann suggested that EU governments should be given an adequate amount of time to get their economies back on an even keel following the aftermath of the global economic slump.

His comments came after European Central Bank vice-president Vitor Constancio told attendees at an event in Vienna that Ireland will have access to rescue fund money to bail out its banking sector.

By Claire Archer

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