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‘ECB's liquidity operations could cost future generations’ - Sharon Bowles MEP

February 1, 2012 4:16 PM

Sharon Bowles MEP, who chairs the European Parliament's Economic and Monetary Affairs Committee, has said that the ECB's liquidity operations may save the Eurozone today but at the cost of future generations' livelihoods tomorrow.

Speaking from Brussels today, Ms Bowles said:

"We must face up to the impact of the crisis on the next generation, which is more than just the fact that we have devastatingly high numbers of young jobless.

"The ECB liquidity operations have lifted the strain on the system for the moment, but we should not be deceived. Potentially, 2 trillion plus Euros being sucked up by the banking system by next June should tell us that some kind of transfer is going on.

"A situation seems to have developed whereby it is either transfer in this generation or transfer to the next generation.

"The question is: will this generation face up to the problems or pass them on to the next generation? Already, the next generation faces having no jobs, no home ownership, and a system stuffed with the bonds of this generation's failure.

"To those who try to blame the EBA bank stress tests, I would like to remind them that the deal was a combination of stress tests and firewalls and it is delay in the firewalls that has made matters much worse."