European Central Bank must respond to wake-up calls
The European Trade Union Confederation (ETUC) calls on the board of the European Central Bank (ECB), meeting today in Frankfurt, to abandon its outdated theoretical monetary approaches and instead open its eyes to economic reality.
At the current time:
Strong transatlantic economic ties mean the euro area will not escape recession in the US economy.
The Federal Reserve’s policy of aggressive rate cuts will work to undermine the dollar and the euro area’s competitive position.
The subprime-induced financial crisis has not been contained at all, but is spreading in an alarming way. Potential investors are confronted with a credit squeeze as well as higher credit costs.
Business cycle indicators are going down, indicating growth prospects are shallow.
Says ETUC Deputy General Secretary Reiner Hoffmann: “The European Central Bank has been receiving one wake-up call after another. The ECB needs to cut interest rates right now if it wants to get back in front of the business cycle.”
Was this article interesting and relevant for you? Do you have any comments?
You can post a reply to this article here.