ECB head gives stark warning to EU states
Duisenberg’s farewell speech to finance ministers, delivered at a dinner in his honour in Venice on Wednesday, was one of his starkest warnings yet that the grand experiment of launching a new currency for Europe, is still a young project that could be undermined by fiscal laxity.
Governments must stick to the budget deficit pact to prevent this, Duisenberg said. “This is a contract not just among governments, but a contract with every single citizen of the euro area. It is on the basis of this contract that they have accepted loss of their monetary sovereignty,” Duisenberg said.
