ECB's Liikanen warns policymakers on speaking out on euro crisis: report

Tue Aug 28, 2012 10:02pm EDT
 
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HELSINKI (Reuters) - Policymakers should consider what they say before commenting on the euro's future to avoid creating market jitters that could enflame the crisis, European Central Bank Governing Council member Erkki Liikanen was quoted as saying.

"The message on the euro's irreversibility is so important that one should not create uncertainty that will start to live a life of its own," he said in an interview with Finnish daily Aamulehti, published on Wednesday.

Earlier this month Finnish Foreign Minister Erkki Tuomioja told Britain's Daily Telegraph that officials had prepared for the possible collapse of the euro zone. German Bundesbank chief Jens Weidmann meanwhile has been vocal in his opposition to ECB plans to buy the bonds of stricken euro members Italy and Spain.

Liikanen, who also heads the Finnish central bank, did not mention any policymakers.

He said the euro zone crisis could accelerate if banking problems are not contained.

"Now there is a threat it (the crisis) will restart through banks and that is why it has to be stemmed here," he said.

Prime Minister Jyrki Katainen has dismissed concerns that Finland, one of the few euro zone countries rated triple-A by all major credit rating agencies, was becoming eurosceptic.

Liikanen said the past five years had been turbulent in the European economy and noted that some research had estimated it could take up to 10 years for growth to return to normal.

The interview took place on Monday. (Reporting by Terhi Kinnunen)