Thomas Mayer, chief economist at Deutsche Bank AG (DBK) in Frankfurt, expects the debate about European Central Bank intervention to settle the sovereign-debt crisis to continue even after last night’s “fiscal compact” accord by political leaders in Brussels.
“I’m a bit skeptical that the markets will come around as smoothly as Mr Draghi was hoping they would,” Mayer said in an interview with Bloomberg Television today, referring to ECB President Mario Draghi. “I think we’ll probably see more near- term tension and that will probably then trigger a more hands-on intervention by the ECB.”
Mayer said that European Union leaders “have now defined the endpoint they want to reach in terms of fiscal governance. But it’s a long way to go there.” Nor does the accord solve the immediate crisis, he said.
“We don’t know how to get there,” he said. “The bridge has not been built.”
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