ECB's Kranjec: euro debt crisis manageable: TV

Reuters News
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Posted: Aug 31, 2011 4:04 PM
ECB's Kranjec: euro debt crisis manageable: TV

LJUBLJANA (Reuters) - The debt crisis in the euro zone is manageable and the existence of the euro is not under threat, European Central Bank Governing Council member Marko Kranjec said in an interview with TV Slovenia on Wednesday.

"The situation (debt crisis) is manageable but the problem is how to ensure sufficient growth in the euro zone countries so that indebted states will be able to pay back their debts," Kranjec said.

He said that excluding Greece from the euro zone would be worse than keeping the indebted country in the monetary union.

Kranjec, who is also the Bank of Slovenia governor, said he expected that the euro zone states will in future consolidate their public finances and fiscal policies.

He welcomed a decision of four euro zone countries -- France, Italy, Belgium and Spain -- to ban short selling of financial stocks earlier in August in a bid to restore confidence in markets hit by rumors and higher borrowing costs.

He also said he will not run for another term as a central bank governor after his six-year mandate expires in the middle of 2013.

(Reporting by Marja Novak; Editing by James Dalgleish)