ECB’s Visco Says Defense of Euro Requires Action From Members

European Central Bank Governing Council member Ignazio Visco urged nations to control debt and stimulate growth as a compliment to monetary policy in a common effort to keep the euro stable.

“Every country must do its part,” Visco, also governor of the Bank of Italy, said in the text of speech delivered today in Rome at the central bank’s annual meeting. “Monetary policy can guarantee stability only if the area’s economic fundamentals and institutional architecture are consistent with that objective.”

Visco is calling for reforms and debt management as the 17-nation single-currency area struggles to bring down unemployment and foster economic growth. Euro instability, which Visco associates with what he calls “redenomination risk,” has been curbed by the ECB’s Outright Monetary Transactions program, announced last year, to purchase debt from countries that request assistance.

“The measures taken, in particular the announcement of the outright monetary transactions, are conducive to the national and European reforms which alone can eradicate redenomination risk,” Visco said.

To contact the reporters on this story: Andrew Frye in Rome at Alessandra Migliaccio in Rome at

To contact the editor responsible for this story: James Hertling at

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