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ECB Dollar Lending Temporary Solution, Unicredit’s Valli Says

The European Central Bank’s plan to step up dollar lending to the region’s banks is only a temporary solution to easing funding needs and solving the region’s debt crisis, said Marco Valli, chief euro-area economist at UniCredit Group in Milan.

“We are seeing a clear sign of stress, so this coordinated move certainly goes in the right direction, but this isn’t a long-term solution,” he said in an interview with Maryam Nemazee on Bloomberg Television’s The Pulse.

For a permanent solution “governments really need to step up their efforts to bring about a coordinated end to this debt crisis,” he said.

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