ECB Stark: Very Concerned About Countries' Budget Deficits
Asia-Pacific exchange net America 2010-01-26 17:16:23
The European Central Bank still expects a slow and bumpy economic recovery and is concerned that deteriorating public finances could weigh on financial markets, ECB executive board member Juergen Stark said Tuesday.
'We are seriously concerned about forecasts of strong rises in government deficits and the indebtedness of countres in the euro zone,' Stark said in a speech here.
The trend could result in further downgrades of sovereign ratings and further negative reaction in financial markets, he warned.