SAN FRANCISCO, Jan 4 (Reuters) - European Central Bank Vice President Lucas Papademos said on Sunday that the euro protects member countries from foreign exchange volatility, but not from the poor performance of their own governments.
'European countries with lower international competitiveness, wider current account imbalances and significant fiscal problems, although they are insulated from the pressures of foreign exchange markets...they are not sufficiently insulated from growth and credit risks,' he said.
Papademos was speaking on a panel discussion on the 10th anniversary of the euro common currency during the annual meeting of the American Economics Association in San Francisco.
(Reporting by Alister Bull, editing by Leslie Adler) Keywords: ECB PAPADEMOS SHIELD/ (alister.bull@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'European countries with lower international competitiveness, wider current account imbalances and significant fiscal problems, although they are insulated from the pressures of foreign exchange markets...they are not sufficiently insulated from growth and credit risks,' he said.
Papademos was speaking on a panel discussion on the 10th anniversary of the euro common currency during the annual meeting of the American Economics Association in San Francisco.
(Reporting by Alister Bull, editing by Leslie Adler) Keywords: ECB PAPADEMOS SHIELD/ (alister.bull@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.