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ECB chief Jürgen Stark has denied the bank is ignoring the problems of the region’s weakest states in an editorial in the FT.His comments are in direct opposition to those who believe the ECB should be keeping rates low to protect the eurozone countries still struggling with their debt crises. Stark says there are plenty of special policies in place to protect countries like Spain and Ireland, but eventually they need to do it themselves.
He warns that if the ECB favoured one country over the eurozone as a while it would be ignoring its key role for all 17 countries and 331 million within the region: price stability.
Juergen Stark for The Financial Times:
The current big challenges faced by some countries are mainly the result of the failure of governments over many years to conduct sound policies and implement the reforms that would benefit their people and make their countries fully fit for monetary union.
All eurozone countries need to implement the long overdue structural economic and financial reforms, enhance their competitiveness and rapidly restore sustainable public finances.
Basically, Stark is saying that the ECB’s roll isn’t to protect these countries, rather, they should be making the reforms necessary to get in line with the eurozone’s core.