European govts 'must act now to resolve crisis'

16 April 2012

Governments across Europe must now be more proactive in their attempts to resolve their country's own debt problems, a senior economic policymaker believes.

Joerg Asmussen, an official at the European Central Bank (ECB), has said the worst of the financial crisis facing much of the eurozone is over, meaning it is now up to individual administrations to implement effective austerity measures.

During an interview with the Wall Street Journal, Mr Asmussen insisted the "ball is with governments" following widespread external intervention - such as the ECB's long-term refinancing operation (LTRO) - so they "have to act".

"The ECB was at some moments of the crisis the only institution that could act. But should it stay like this? Clearly not," he went on to say.

This comes after Andrew Roberts, credit chief at the Royal Bank of Scotland, told the Daily Telegraph that the LTRO may have made banks more vulnerable to financial problems.

By Asim Shah

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