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The Bank of England’s governor, Mark Carney, has described the eurozone as “the greatest financial disaster in the history of mankind”.
“Our task is to ensure that the economy is not destroyed and the financial system remains stable. “
“It’s imperative that we remain flexible in our monetary policy, but that we do so in the most prudent manner.” “
Carney, who will be leaving the Bank of Canada this week, said that the eurozone’s current situation could be a “catalyst for other countries to look at” and urged governments to act swiftly. “
It’s imperative that we remain flexible in our monetary policy, but that we do so in the most prudent manner.”
Carney, who will be leaving the Bank of Canada this week, said that the eurozone’s current situation could be a “catalyst for other countries to look at” and urged governments to act swiftly.
He also said that there would be “no easy solution” to the crisis.
Carneys announcement came as the IMF said it would not support the European Central’s efforts to rein in Greece’s banking system.
The IMF’s chief economist, Christine Lagarde, said the IMF’s “unanimity” in its call for more austerity measures in Greece “has led to a lot of speculation”.
She said the bank had been told that it would be forced to act.
But she said the US would remain neutral on the issue.
European governments are divided on whether to take more direct action to reinstate Greece’s banks.
In the past, governments have called for the European Stability Mechanism (ESM) to act to force Greece to re-establish banking services.
This week, a summit of eurozone finance ministers was set to decide whether to agree on a package of more than €15bn (£13bn) in emergency aid to be put into the EU bailout.
Greece has repeatedly rejected these offers and instead is demanding that a bailout fund be set up for it.
Earlier this week Greek Prime Minister Alexis Tsipras said that he was prepared to walk away from talks over the bailout if he does not receive the money from the eurozone.
However, he insisted that if the ECB wanted to force him out of the eurozone, he should give it a “no” answer.
German Chancellor Angela Merkel has also warned that Greece’s debt crisis will “destroy Europe”.
“Greeks debt crisis is not the only issue, we have a debt crisis in Germany, and in Europe, as well,” Merkel told a press conference in Berlin.
Meanwhile, the European Commission said on Wednesday that it will start to provide more emergency assistance to countries that fail to meet their debt repayments, and will also open an inquiry into Greece’s bailout.
(FRANCE 24 with AP, AFP)Topics:economy,european-union,europes-crisis,government-and-politics,greece-republic-of,economy-and_finance,germanyFirst posted May 11, 2017 09:23:15