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18 Oct 2013
ECB's Nowotny upbeat about the Eurozone economy
FXstreet.com (Barcelona) - The President of the National Bank of Austria and ECB Governing Council member Ewald Nowotny said on Friday that Europe is expected to exit recession in 2014. Next year we should witness a revival of global activity, he stated.
He pointed to the improvements in the economic performance of Italy and Spain, although he suggested that Greece's road to recovery would be longer and more bumpy. He also expressed some worries about the soundness of the EU banking system. Additionaly, he said that the ECB is prepared to act should risks to price stability emerged, but that currently the central bank doesn't see such a threat.
Moreover, Nowotny expressed his relief that the US government managed to strike the budget deal on time to avoid default and seriously damage growth. He affirmed that the dollar is still the most important currency but that the euro's role as a reserve currency is strengthening.
He pointed to the improvements in the economic performance of Italy and Spain, although he suggested that Greece's road to recovery would be longer and more bumpy. He also expressed some worries about the soundness of the EU banking system. Additionaly, he said that the ECB is prepared to act should risks to price stability emerged, but that currently the central bank doesn't see such a threat.
Moreover, Nowotny expressed his relief that the US government managed to strike the budget deal on time to avoid default and seriously damage growth. He affirmed that the dollar is still the most important currency but that the euro's role as a reserve currency is strengthening.