Indebted Nations Must Cut to Thwart Crisis, ECB’s Liikanen Says
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Developed nations with unsustainable debt must balance their budgets to prevent the outbreak of a new financial crisis, European Central Bank Governing Council member Erkki Liikanen said.
“Government debt is a problem for all developed countries,” Liikanen, who began his second term as governor of the Bank of Finland this week, said at a seminar in Kokkola, western Finland, today. “We must stop it from coming to a head, to prevent the financial crisis starting again. All countries need a credible program to balance public finances to help stabilize the situation gradually.”