ECB board member Peter Praet says responsibility for the resolution of the sovereign debt crisis lies with euro area governments.
Praet says “major progress” has been made in the areas of fiscal consolidation and governance framework, but was not complete yet.
He says: “Governments need to urgently implement their fiscal consolidation programmes and to accompany these with well-designed structural reforms in the labour and product markets.
“The new fiscal and macroeconomic rules of the European governance framework need to be implemented to the letter. And the crisis management mechanisms at the euro area level need to be designed so as to ensure financial stability in the euro area.”
Praet says the sovereign debt crisis has shown the eurozone countries are not insulated, with “spillover effects” from one member to the other enhancing the need for sound fiscal and structural policies.