Brace for many years of instability: German bank boss

6th September 2011, Comments 0 comments

European financial markets will be rocked by instability for many years to come, one of Germany's top bank chiefs predicted on Tuesday, as the continent's leaders battle to achieve true monetary union.

"During this time, there will be turbulence on the financial markets. That is the price for completing the currency union. I think that is acceptable," Commerzbank boss Martin Blessing said in an interview with Handelsblatt.

Commerzbank, Germany's second-biggest bank, has also suffered from this turbulence, its shares plunging 45 percent in three months.

In response to Germans angry that their taxes are being used to prop up debt-wracked eurozone countries, Blessing said: "The current debate in Germany is neither open nor fair."

"We want to have our cake and eat it. We want the euro, but we do not want the consequences."

He said Germany should "pose the question the other way around, of how big the crisis would be if the currency union broke up."

The best way to calm the markets now is for politicians to establish a "binding timetable" to solve the problems, said Blessing.

© 2011 AFP

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