Trial now
FOREX

Markets Mixed, EUR/USD The Standout

FRANCE AUCTION RESULTS

France Sells E10.355bn of OATs

By Luke Heighton
     FRANKFURT (MNI) - The ECB "can always do more," Vice-President Luis De
Guindos said in an interview Friday, and will act with "extreme intensity" to
ensure the Covid-19 pandemic does not result in either a financial or a debt
crisis.
     Nevertheless, the economic impact of the"huge health crisis [...] will be
enormous," De Guindos said, adding: "We just hope that it will be temporary."
     Here are key points from his interview with Telediario 2:
     --The ECB "will not allow [...] fragmentation of any kind in the sovereign
debt markets and a return to the nightmare caused by widened spreads," De
Guindos said.
     --"We are going to ensure that it does not result in some kind of financial
crisis or debt crisis," he continued. "We can always do more [...] The ECB's
commitment "knows no limits. "We will do whatever is necessary to ensure that
this pandemic, which is having a massive economic impact, does not turn into a
debt crisis or a crisis of the financial system. We will not allow this to
happen. We are dealing with a situation which requires us to act with extreme
intensity." 
     --Asked whether the crisis might "take its toll on the European project,"
De Guindos replied: "Let's hope not. The ECB has already acted. Basically what
remains is for member states also to act and continue to act through their
fiscal policies. And we need a pan-European response. We need a coordinated EU
fiscal policy response. I am sure that this is what will happen in the end."
--MNI Frankfurt Bureau; +49-69-720-146; email: luke.heighton@marketnews.com
--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com
[TOPICS: M$X$$$,MT$$$$,M$$EC$]