A joint statement by the President of the European Central Bank and the Commissioner for Economics
Today has seen unprecedented pressure upon the Euro currency. There seems to be rumour abounding upon rumour following a speculative and irresponsible report by the Californian Broadcasting Corporation suggesting that various nations are on the point of exiting the currency union.
Of course nations are free to leave the Euro should they wish to do so, but they have to be aware of the severe economic repercussions that are likely to follow such an exit. Exiting a currency union is not something to be undertaken lightly.
The Commissioner has today been meeting with the Finance Ministers of the Euro nations. There is nothing unusual in this and investors should not read anything into the existence of such meetings.
To support the Euro and prevent its further decline in the markets tomorrow, the President of the European Central Bank wishes to announce a 2% rise in the base interest rates of the Eurozone, from 3% to 5%. Rest assured we will do everything necessary to safeguard the integrity of the Euro.
Dr Michael Reed - President of the European Central Bank
Dr Suzannah Beech - Commissioner for Economics