The euro's strength relative to other currencies isn't a cause for concern, and governments need to keep up the pace of reforms as the single currency bloc slowly exits the crisis, European Central Bank governing council member Luc Coene said when presenting the National Bank of Belgium's annual report.
"I think that with the current level of the euro there's absolutely no problem," he said, adding that all indicators show it is below historic highs. Asked if there were a level where the currency's strength will cause problems, he said there "probably" is one, but "I don't have a crystal ball."
Above all, he said in the foreword to the report, "monetary policy cannot solve the crisis in the euro area...it can only buy time" for essential adjustments to be made--meaning governments must stick to the path of reform.
Turning to Belgium, he said the government must be vigilant on debt and its budget deficit--and that it must tackle wages as the country's competitiveness suffers compared to its neighbors. He also warned the country's six-party coalition government not to get complacent about low borrowing costs.
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