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Financial Times: As the outlook in Europe deteriates, rates need to fall as well as the euro to provide relief for industry

A Weekly Digest of The World's Financial Press

Tuesday 30 March 1999 23:02 BST
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THE BIGGEST obstacle to lower interest rates in the euro-zone has been politics rather than economics. The ECB has been determined to prove its independence in the face of calls for lower rates from politicans. With the departure of Oskar Lafontaine, the former German finance minister, this must not continue.

The International Monetary Fund last week became the latest international institution to call for lower euro-zone rates. The ECB has proved its independence from policiticans. It must not now demonstrate an indifference to common sense.

- Editorial

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