- Title: JAPAN: ECB cannot be expected to perform miracles - Katainen.
- Date: 5th September 2012
- Summary: TOKYO, JAPAN (SEPTEMBER 5, 2012) (REUTERS) EXTERIOR OF JAPAN PRESS CENTER SIGN IN ENGLISH READING: "NIPPON PRESS CENTER" VARIOUS OF FINNISH PRIME MINISTER JYRKI KATAINEN WALKING INTO ROOM FILLED WITH REPORTERS AND SITTING DOWN REPORTERS (SOUNDBITE) (English) FINNISH PRIME MINISTER JYRKI KATAINEN SAYING: "I clearly see that what the ECB has done so far, it has been very right thing and they of course play a partial role in the crisis management. But we cannot expect the ECB to do miracles because they have to follow their rules and their ultimate goal is price stability, so they have to follow their mandate." KATAINEN SITTING (SOUNDBITE) (English) FINNISH PRIME MINISTER JYRKI KATAINEN SAYING: "Countries in critical positions must do their share. They must regain the confidence by themselves. They must do austerity measures even though it has a negative impact to the growth in the short term." KATAINEN SITTING (SOUNDBITE) (English) FINNISH PRIME MINISTER JYRKI KATAINEN SAYING: "That's why we have proposed another options then just raise the amount of cash because we don't believe in a solution which is paid by cash only." SIGN IN JAPANESE READING : "JAPAN REPORTERS CLUB" KATAINEN WALKING OUT
- Embargoed: 20th September 2012 13:00
- Keywords:
- Location: Japan
- Country: Japan
- Topics: International Relations,Economy,Politics
- Reuters ID: LVA6P99STRB50LHIS6NDXAHJYN75
- Story Text: Finnish Prime Minister Jyrki Katainen says the ECB cannot be expected to perform miracles and urges euro zone countries in "critical positions" to push austerity measures.
Finland's Prime Minister Jyrki Katainen said he agrees with what the European Central Bank (ECB) has done to handle the euro zone crisis but to not expect miracles from an organization whose primary goal is price stability, in a news conference in Tokyo on Wednesday (September 5).
"I clearly see that what the ECB has done so far, it has been very right thing and they, of course, play a partial role in the crisis management. But we cannot expect the ECB to do miracles because they have to follow their rules and their ultimate goal is price stability, so they have to follow their mandate," said Katainen.
ECB President Mario Draghi signalled in August he was ready to resume buying government bonds provided that the euro zone's rescue fund was also involved, and assisted countries accepted strict policy conditions with international supervision of compliance.
Draghi will try to back up his pledge to do "whatever it takes" to save the euro when he presents some details of a new bond-buying plan that is transfixing markets hopeful it can ease the euro zone crisis.
The ECB is being forced to take a greater role in fighting the debt crisis while governments negotiate legal and political hurdles to co-ordinating a longer-term response.
"Countries in critical positions must do their share. They must regain the confidence by themselves. They must do austerity measures even though it has a negative impact to the growth in the short term," Katainen said.
Finland also opposed measures such as the European bailout fund buying sovereign bonds in the secondary markets to support weak euro zone states.
While Katainen's government is pro-euro, it has taken a tough stance on bailouts and has demanded collateral in exchange for loans to struggling euro zone countries.
He added that Finland will not just pour cash to help countries who do not help themselves.
"That's why we have proposed another options then just raise the amount of cash because we don't believe in a solution which is paid by cash only," said Katainen.
Finland, a triple-A rated country, is one of only four remaining euro zone members to retain the top credit rating. - Copyright Holder: REUTERS
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