CANNES-The start of reforms is in place to turn the European economy and banking crisis around. But that doesn't mean there won't be more pain ahead. That was the assessment of Jurgen Stark, a member of the European Central Bank Executive Board from 2006 to 2011, in comments he made at MIPIM here Thursday morning.
The good news is that the economy has bottomed out, and Stark sees a growing GDP, starting with export demand and eventually spreading to investment. As he puts it, “the markets have calmed down.”
Stark denies European culpability as the main driver of the world's economic woes. Rather, he laid the blame at all advanced economies due to what he termed foolishly loose fiscal policy and a “surprising” underestimation of the impact of the housing failure. “No region of the world,” he says, “can ignore” its own fiscal responsibility.
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
