Sunday, 9 September 2012

Van Rompuy on "Disconnected Risk Premia"

In a statement today by Van Rompuy, following his "working luncheon" with the unelected prime minister leading the current technocrat government in Italy, Mario Monti, Mr Van Rompuy explains,
Looking at what has already been achieved, looking at the determination of the Italian people to attack each problem, one by one, I am confident the efforts will be met with success -- knowing  they must be pursued relentlessly, giorno dopo giorno…!
Whilst these reforms are underway, risk premia can be disconnected from economic fundamentals and reform efforts. This can have negative repercussions for the stability of the eurozone as a whole.
We await in excitement Mr Van Rompuy's exact calculations of what the risk premia across the euro area should be for the various financial instruments and for all durations.




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