Europe Prepared for Downturn in US Economy: Bank OfficialEurope is "well prepared" to pace whatever happens to the US economy, a senior official of the European Central Bank (ECB) said Monday.Eugenio Domingo, a member of the executive council of the bank, said the important thing is that the European economy should be " balanced, solid and with sound foundations." Domingo told the opening of a winter course at the University of Malaga in southern Spain that whatever happens to the U.S. economy will affect Europe "depending on its intensity and duration," but "we are 'well prepared to face' complications." He said the monetary conditions in Europe are adequate to deal with the economic situation. He also noted that inflationary pressure was turning moderate and perspectives were improving thanks to the ECB's monetary policy. Domingo said he could see no reason to worry about the situation in the stock market, adding the alternation of bullish and bearish markets is normal. Referring to last week's drop in stock markets, he said: "It has to be seen from a long-term perspective, not in terms of days of even weeks." Domingo also said the euro has increased efficiency and the performance of the single European market improved, and that the higher efficiency of the single currency euro helped to "lubricate its performance." |
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