Last Update: 15:28
The agreement reached by the Eurogroup in June will enable the economy to stabilise and investment to return, Beno?t C?ur?, Member of the Executive Board of the ECB, said in an interview with Le Monde and La Stampa.
"If political uncertainty and uncertainties around the implementation of the aid package disappear, I am sure that Greece will be able to benefit from a strong cyclical recovery that will ultimately enable it to consider its model for future growth. The time has finally come to ask these long-term questions," he said, AMNA reported.
However, according to C?ur?, the agreement reached by the Eurogroup isn?t perfect, because it doesn?t provide a clear answer to the issue of Greek debt sustainability.
Regarding the ECB policy, he said: "If needed, the Governing Council will continue to adjust its instruments both qualitatively and quantitatively. But when this is needed, it should do so carefully and flexibly, and based on what matters for us within the framework of our mandate: the inflation outlook. We must be transparent in our communications on these developments. Otherwise we run the risk of a more abrupt adjustment for the markets when the decisions are actually taken."
Asked if the coming increase in interest rates pose a threat to the countries with weak public finances, he replied: "The increase in long-term interest rates is the result of consolidating growth. Governments and financial players must prepare themselves for it. They are aware of that."