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Central banks are closely monitoring the impact on markets of
Britain's decision to leave the European Union and stand ready
to intervene if financial stability is threatened, Benoit Coeure,
an ECB Executive Council member, told Le Monde daily.
That could take the form of liquidity injection in euros or
other currencies, he said, while adding that markets had
continued to function normally so far despite huge adjustments.
"What is urgent today is to clarify the calendar and method
because a prolonged uncertainty would have an economic cost,
first of all for Britain but also for the European Union,"
Coeure told Le Monde.
A healthy pickup in growth in the euro zone, constrained by
unemployment and high debt levels, "will inevitably suffer from
the 'uncertainty shock' that is created by the British
referendum," he said.
Britain's decision to leave the bloc does not put the EU
construction project at risk but steps must be taken to protect
the euro currency, Coeure was also quoted as saying.
"The euro is a reality but it must be protected. This requires
moving towards more integration in financial and budget matters,
around joint euro zone institutions that will be accountable to
citizens," he said.
"Experience from the crisis has convinced me that an
intergovernmental Europe, where budgetary and financial
decisions would be taken only by governments, would condemn the
euro to lasting fragility," he said.
But first of all, EU leaders must start by reconciling citizens
with the EU with projects on growth and jobs, he added.
(Reporting by Ingrid Melander; Editing by Gareth Jones)
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