Central banks 'cannot resolve crisis without govt action'

4 March 2013

Central banks are unable to resolve the ongoing eurozone debt crisis without major assistance from governments in the region.

That is according to Benoit Coeure, an executive board member at the European Central Bank (ECB), who has called on administrations across the 17-member state bloc to step up their efforts to improve financial conditions in the area.

During a speech delivered at the European Conference held at Harvard University on Saturday (2 March), Mr Coeure explained that while central institutions can assist in the recovery process, they can only play a supporting role to "resolute" governmental action.

"The central bank can buy time for political bodies to act, but it cannot buy enough time for them not to act," the official noted.

Mr Coeure went on to say there is currently a major problem in the European Union because citizens of member states "feel disconnected" from decision-making in the area and "do not know who really represents them in Europe".

By Claire Archer

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development