controversial six-point plan put forward by Germany to boost economic coordination in the euro zone as the bloc zeroes in on a comprehensive package to solve its sovereign debt crisis.
"It would be preferable to put more emphasis on automatic sanctions to achieve the Maastricht criteria instead of being led to an intergovernmental accord to change the constitution of every country, which could prove even more slow (to reach) than even a treaty," Mersch, Luxembourg's central banker, told the paper in an interview.
He said the euro zone was not facing a crisis of the euro as a currency but a fiscal crisis in several countries which needed to take tough measures to tackle their problems.
"There is no crisis of the euro as a currency. In the last 12 years the euro gained more value than any other currency in the last 50 years," Mersch said.
"What we are going through now is a crisis in the public finances of several countries. But this in no way sets at risk the viability of the euro zone."
Mersch said macroeconomic imbalalances should be avoided and corrected at an early stage and that usage of the European financial stability mechanism should be flexible.
He told the paper European Central Bank President Jean-Claude Trichet should have the full support of his colleagues until his term ends in October.
"The president of the ECB will be in his position until the end of October. Until then and amidst such critical conditions he needs allies and the maximum support from all his colleagues despite talk of his likely successor," Mersch said.
He said improving competitiveness was key to boosting growth in the 17-country bloc and that some countries needed to tidy up their banking systems to have healthy balance sheets and efficient risk management.
Commenting on Greece, which is struggling to emerge from a severe debt crisis, Mersch said progress in slashing deficits so far was impressive given the adverse macroeconomic conditions.
"In the future, it is particularly crucial that Greece fully complies with the fiscal adjustment plan. This is something that will bring back credibility and trust in Greece," he said.
source: Reuters
