17 November 2010, 17:49  ECB, Quaden: Еconomic recovery remains fragile

The economic recovery remains fragile and so a reduction of deficits should not be carried out in a "brutal" fashion, European Central Bank Governing Council member Guy Quaden was quoted as saying on Wednesday. Quaden, who is governor of Belgium's central bank, told La Libre Belgique newspaper there were a series of factors that made recovery fragile. He said the upturn was uneven, with strong growth in China and Brazil and a more hesitant expansion in the United States. Even in the euro zone, it was clear that Germany was outpacing other members. Unemployment was a concern, banks were on the way back from intensive care and international cooperation was a challenge. "We have learned the lessons of the past and we have remembered that in crises we need to avoid restrictive monetary policy and banish protectionist attitudes," Quaden told the newspaper. "The G20 reacted well to the crisis of 2008, but we see certain (countries) are tempted to play their own game," he said, adding that everyone lost from monetary wars. The final concern, Quaden said, was public finances. Deficits had built up during the crisis and they needed to be brought down. "It is required because one needs to be credible," he said, but added: "I am not calling for a brutal reduction of deficits."

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