ECB's Issing warns against EMU 'tensions'

European Central Bank chief economist Otmar Issing is warning against "tensions" in the European monetary union, according to an interview published in Handelsblatt on Monday 29 May.

"Some of the member states have lost their competitive edge due to the continued rise in unit labour costs, and have thereby landed in a difficult situation," Issing said.

"These countries must do something to change their course, or it could result in great tensions," he said.

It is the first time the ECB admits th