VIENNA (dpa-AFX) - The risks to the euro area remain on the downside and pose significant challenges to policymakers, European Central Bank Governing Council member and Bank of Spain Governor Luis Maria Linde said Wednesday.
'Uncertainty and a weak global economy keep the balance of risks to the downside, posing important challenges for policy makers that require the contribution of all areas of economic policy at both the national and the euro levels,' Linde said in a speech delivered at the International Institute of Finance annual meeting in Madrid.
'In the current circumstances, synergies among economic policies should be better exploited with a view to maximizing the stimulus to aggregate demand and to accelerate the recovery,' he added.
The effects of ECB's stimulus actions are estimated to have contributed to reduce financial stress and fragmentation, easing financing conditions and helping to restore the credit channel, Linde said.
The policymaker also noted that these actions have lowered the likelihood of 'very adverse scenarios' in the Eurozone.
The ECB is set to announce its next interest rate decision on June 6.
Copyright RTT News/dpa-AFX