Stark says contagion threat has been ‘overstated’


Former European Central Bank (ECB) chief economist, Jürgen Stark, has played down the risk of contagion between European economies.

In an interview with the BBC, Stark said: "In my view, from the very start the contagion question was overstated...Now, with the reform programmes underway and being implemented in Ireland, being implemented in Portugal, also the new political process in Italy, and the progress made so far in Spain, from this point of view, contagion is limited."

Stark added that it

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