Pages Navigation Menu

Daily Dutch News in English

Will the Euro endure?

The head of the Dutch National Bank, Nout Wellink, insisted that the euro was a “stable” currency and that its continued existence was not threatened by eurozone debt or banking crises.

Wellink said in an interview with the Belgian website Trends that the future of the euro is “not at stake” due to the debt crisis in some European countries.

Wellink believes that the Stability and Growth Pact should be strengthened. That pact was signed in 1997 to ensure stability of the euro. “It must be more strict, and it should improve compliance. The proposals are inadequate. From a mutual sense of responsibility, each country should have its own financial affairs in order, said Wellink.

The head of the Dutch National Bank told Belgium’s Trends magazine that “we cannot forever continue” providing banks with sufficient liquidity.

Last week The European Central Bank pumped 130 billion Euros in the Irish banks to keep them afloat. “We are not here to finance the banks continuously” said European Central Bank director, Wellink.

Europe’s recovery “is continuing, albeit at a slower pace,” according to Wellink, who said there were “no indications that a new recession is lurking. There are also tentative signs that the recovery has a self-supporting character.”

The euro will endure, but the Stability and Growth Pact should be strengthened, he said.