FXStreet (Mumbai) – In an interview published on Tuesday, Luc Coene, Belgium’s central bank governor and member of the ECB Governing Council, cast his doubts on the deal that was struck over the weekend in Brussels between Greece and euro zone leaders, clearly influenced and led by Germany.
Key Quotes:
“One has impression of having avoided a Grexit. But when I see what is imposed on Greeks, I wonder if it would have been easier to momentarily lift the country from the euro zone,”
“Of course, a Grexit would cost billions… The euro would be weakened in the early days, the early weeks. But once the dust settled, it would not be a disaster,”
“We would not have abandoned Greece. We could continue to help with investment to get its economy back into orbit. I’m not too worried for the first parliamentary deadlines, but the implementation of this third bailout will be long and difficult,”
“(Germany) seeks to preserve the monetary union. We cannot have a monetary union without responsibility on all floors. Solidarity comes after. Other countries around the table are more lax and want the opposite: first of solidarity and responsibility after. This is not how a monetary union operates.”
“Europe did not give a good picture of her… Ultimately, this may even call into question the credibility of the euro. We may relive the 2012 crisis, when the euro faced disaster. Except that I’m not sure we can save him again.”
(Market News Provided by FXstreet)