Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Ukip leader Nigel Farage. PA Wire/Press Association Images
Eurozone

ECB warns countries to get economies in order as 'populist parties' are on the rise

An official said that these parties were only offering quick solutions.

THE RISE OF populist parties across Europe should act as a wake-up call for governments to finally get their economies in order, a top European Central Bank official said today.

“The rise of populism should be a wake-up call,” the ECB’s chief economist Peter Praet told the financial daily Boersen-Zeitung in a wide-ranging interview.

Difficult decisions 

The governments have to give priority to difficult political decisions and follow through with the much-needed reforms.

Praet’s comments came as Greece is preparing for snap elections with a far-left anti-austerity party Syriza leading opinion polls.

Syriza pledges to reverse Athens’ reform commitments and even eventually take Greece out of the eurozone.

“Populist parties in some countries promise quick solutions — but they offer only recipes for disaster,” Praet warned.

“Nobody should be under the illusion that you only need to return to the old system and everything will be better,” he argued.

Countries had signed up to the single currency because the old system of constant devaluation was not working.

“What is needed now is to make the much needed structural adjustments. A devaluation policy doesn’t solve structural problems,” Praet said.

There were institutional flaws in Europe which had to be resolved, the economist argued.

“We have a monetary union with a very strong central bank — but the other institutions have been too weak,” he said.

© AFP 2014

Read: Ban on alcohol sponsorship of sport possible once alternative financing is found — Varadkar>

Read: “Loose talk” of higher pay from the Government not helpful, says business group>

Your Voice
Readers Comments
128
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.