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The real crisis is the solvency of the ECB itself - Farage
Date 08/06/2011 11:01  Author webmaster  Hits 3069  Language Global
VIDEO
Yesterday in the European Parliament, UKIP Leader Nigel Farage asked Commission Presidant Manuel Barroso if he accepted that after buying so much bad debt from Greece, Ireland and Portugal the finances of the ECB and its integrity are now in a serious and perilous state?

"Just yesterday," Mr Farage said, "the respected think-tank
Open Europe came out with some figures on this, and it said of the ECB exposure a staggering €190bn is exposure to the Greek state and Greek banks. Should the ECB see the value of its assets fall by just 4.25%, its entire capital base would be wiped out.

Farage asked: "Do you accept the findings of Open Europe, or do you go along with Mr Juncker's assertion a couple of weeks ago that with the situation of the euro being as serious as it is you actually have to lie in public?"




Excerpts:

Nigel Farage:
The question I ask today is far more serious than anything that has happened in Greece, or Ireland or Portugal to date. It is the real debt crisis, it is the real sovereign debt crisis which we may face within the next few weeks and that is the integrity of the ECB itself.

Month after month I have warned that you cannot go on buying up vast quantities of your own bad debt.

Mr Barroso, do you accept that the finances of the ECB and its integrity are now in a serious and perilous state?

Manuel Barroso:
No. I don't accept. I think the European Central Bank is a very credible institution that has been managed with great wisdom and intelligence. And I think the independence of the ECB is respected by members states of the Euro area... your criticisms of the euro area are always ideological...

Farage:
That is just rhetoric. Just yesterday, the respected think-tank Open Europe came out with some figures on this, and it said of the ECB exposure a staggering €190bn is exposure to the Greek state and Greek banks. Should the ECB see the value of its assets fall by just 4.25%, its entire capital base would be wiped out.

Do you accept Open Europe's finding or do you go along with Mr Juncker's assertion a few weeks ago that with the situation of the euro being as serious as it is you actually have to lie in public?

Barroso:
First of all, I don't lie and the European Commission has always been very consistent in the information we have given about all the situations. The situation is difficult, we have said honestly from the beginning, but we do not pretend the situation is a rosy one. ...I have no doubts about the credibility of the ECB...
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