Central Banks

Saturday, October 15, 2011 - 02:00

ECB Stark: EMU Needs Hard Choices Not More Bailout Debt:Press

FRANKFURT (MNI) - Outgoing European Central Bank Governing Council Member Juergen Stark said the only way to solve the debt crisis is through hard political choices that reduce debt, not more bailout spending.

In an interview with the Saturday edition of Dutch newspaper NRC Handelsblad, Stark said countries need to "spend less and reform more."

"The alternative is spending more on crisis resolution. But where does that money come from? For what is it used? We need a fundamental rethink of our economies," Stark emphasised. "We need a new growth model. Piling up more debt is not a solution."

"Some say we need E1.0 trillion to stop the crisis. But what do you buy with that? Only time. Time for what? We don't need more money. We need politicians that take charge," Stark argued.

--Frankfurt Bureau +49 69 720 142; email: frankfurt@marketnews.com--

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