ECB Constancio: Recovery Is Broader But No Reflationary Phase

By Jack Duffy

     PARIS (MNI) - The Eurozone economic recovery is broader and more

consolidated but an expected global reflationary phase has not materialized,

European Central Bank Vice President Vitor Constancio said Friday. 

     Speaking in Italy, Constancio said "the strong worldwide reflationary phase

that seemed likely at the beginning of the year has not materialised. Therefore,

the tasks of normalising inflation and unemployment to acceptable levels

continue to be difficult."

     Constancio said while financial conditions could deteriorate because of

geo-political events, economic reforms have made the Eurozone more resilient to

external shocks. 

     "The monetary union is now more resilient to shocks as a result of a

reduction in imbalances and stronger synchronisation of the economic cycle

across countries," he said. "The euro area is thus better prepared to resist

financial market shocks."

     More

--MNI Paris Bureau; tel: +33 1-42-71-55-41; email: jack.duffy@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: M$X$$$,M$$EC$]