VIENNA, Nov 16 (Reuters) - Following are quotes from
policymakers from the European Central Bank, European Commission
and other central and eastern European central banks at a
conference on Monday.
ECB EXECUTIVE BOARD MEMBER GERTRUDE TUMPEL-GUGERELL
"One essential element of the countries' euro adoption
strategies relates to the credibility of timetables... The
recent financial crisis ... has moved euro adoption further into
the future. Therefore, individual countries' timetables have to
be carefully looked at and adjustments may be necessary."
"Overly ambitious timetables for adopting the euro can be
rather costly for the country concerned. This may encourage
market participants to pursue strategies which may prove risky
if the timetable turns out not to be achievable."
"The financial crisis has not changed our policy for
adopting the euro... To prematurely adopt the euro, in
particular if not accompanied by a sufficient degree of
sustainable convergence, is certainly not a solution to overcome
the impact of the crisis."
EU MONETARY AFFAIRS COMMISSIONER JOAQUIN ALMUNIA
On fx rates:
"We are taking good note of recent statements by (U.S.
Treasury Secretary Timothy) Geithner, saying that the U.S.
administration supports a strong dollar, and of the Chinese
authorities' statement ... that they will reconsider the present
rate of the yuan versus the dollar."
"I think these are good statements that I hope will be
followed by consequences."
On setting rates according to fundamentals:
"I see in the case of China in particular and other emerging
economies to let rates be decided in a more flexible way by the
market with less public interventions. This would be the best
system for all of us."
On euro adoption:
"An accelerated euro area enlargement that would require a
waiver or a loosening of the entry criteria specified by the
treaty is not an option."
"Euro adoption should not be seen as a quick fix to economic
vulnerabilities... it does not eliminate the need to work out
underlying imbalances."
POLISH CENTRAL BANK GOVERNOR SLAWOMIR SKRZYPEK
"In my opinion, it would be really risky to approach ERM-2
being under (the) procedure of excessive budgetary deficit."
"The best strategy in announcing a (euro target) date is the
one taken by the Slovak central bank. The best moment to
announce such a date is the moment of entering ERM-2 mechanism."
"My major concerns are stability on financial markets and
the fiscal policy issue."
SERBIAN CENTRAL BANK GOVERNOR RADOVAN JELASIC
On growth:
"We are definitely revising the drop of GDP for this year.
We are now assuming it will be minus 2.8 percent. In March we
were talking about minus 4 then it came down to 3 percent. Based
on preliminary data for the third quarter, we assume a GDP
increase of some 4.1 pct in the third quarter on the second
quarter, which would definitely bring to us a smaller GDP drop.
Next year we expect an increase of 1.5 percent and for 2011
right now we expect a GDP increase of 3 percent.
"Exports are picking up, industry is picking up, (and) we
also see that imports are growing again because a lot imports
end up as exports.
On monetary easing:
"The next steps have to be cautious because ... we're
probably getting close to a break even point but there's
definitely more space. But if you asked me, we wouldn't continue
with such large steps."
"In the time period of the last seven to eight months, we
brought down our reference rate from 17.75 percent to 10. We
gave banks liquidity of some 600 mln euros because we changed
reserve rules... And we maintain a stable exchange rate."
SWEDISH CENTRAL BANK DEPUTY GOVERNOR KAROLINA EKHOLM
Zero rates for Sweden?
"We are now still in a recovery phase, things are improving,
households are becoming more optimistic, and in some sectors the
firms are becoming more optimistic."
"I would feel very uncomfortable with lowering interest
rates in such a situation. The market's interpretation would not
be easy for us to manage."
On household credit, house prices:
"I am a little bit concerned about the fast expansion of
household credit and increased house prices in Sweden. I think
an interest rate cut would be very difficult.
"It would be very difficult for us to cut the interest rate
as the same time as we are trying to argue that house prices are
moving upward too fast."
ESTONIAN CENTRAL BANK DEPUTY GOVERNOR MARTEN ROSS
On meeting euro zone criteria early next year:
"It's definitely possible, we are working in that
direction," Ross told reporters on the sidelines of the
conference.
"Based on our calculations, (additional measures are) not
necessary (for the budget to meet the target), but the buffers
are very small. But have we also said that ... bigger
consolidation next year would be maybe good."
"It (Q3 GDP) was almost exactly to our forecast, so no
surprise on that front."
(Compiled by Patrick Graham)
