Former European Central Bank Executive Board member Lorenzo Bini Smaghi said lawmakers must speed up their decision-making processes to stabilize financial markets and safeguard the euro.
“For politicians to be credible, it’s important to anticipate and take decisions early,” Bini Smaghi said in an interview with CNBC broadcast today. “Unfortunately, politicians have been determined but always too late. It’s too risky to manage a currency like this.”
At some point, markets will test the resolution of lawmakers to fix the region’s debt crisis, Bini Smaghi said. The best strategy to avoid the resurgence of fear on financial markets is to “clearly identify” the emergency funds available “and say if needed, theses funds will be used,” he said.
To contact the reporter on this story: Jana Randow in Frankfurt at firstname.lastname@example.org
To contact the editor responsible for this story: Craig Stirling at email@example.com