No firewall will be high enough to be a substitute for the required fiscal and structural adjustments in euro area member states, European Central Bank Vice-President Vitor Constancio said Wednesday.
Speaking to the European Parliament's Economic and Monetary Affairs Committee in Brussels, he said the aggregate general government deficit fell to 4.1 percent of GDP in 2011 due to both consolidation measures and some revenue developments.
He added that the ECB will play a significant role in the crisis management framework.
Earlier in the day, Bundesbank board member Andreas Dombret said there is no lasting solution to the crisis other than tackling root causes. Firewalls can help some countries to cope better with the effects of sudden shifts in investor sentiment, but, ultimately, all it can do is buy time.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.