Wall Street Journal
January 11, 2012
The European Central Bank needs to do more to prevent the collapse of the euro, Fitch Ratings said Wednesday, one day after banks' overnight deposits with the bank hit yet another all-time high.
"The ECB, clearly, does need to be more actively engaged," said David Riley, head of global sovereign ratings at Fitch, speaking at a conference in Frankfurt. The ECB "has plenty of scope to expand its balance sheet without unleashing inflation in the euro zone," Mr. Riley said.
Fitch is conducting roadshows across Europe this week to discuss its 2012 outlook for the region. The comments in Frankfurt followed a speech Tuesday in London, where Mr. Riley said the lack of an agreement from European leaders on how to implement a "credible firewall" to prevent contagion puts the currency bloc at risk of dissolving. However, as Fitch does not regard the current euro-zone crisis as a monetary crisis, "it is unreasonable to expect the ECB to save the euro on its own," Mr. Riley added on Wednesday.
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