Top ECB policymaker warns ‘worst-case scenarios’ are materialising

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The European Central Bank has faced an economic environment where “Implementing some of the worst situations we have identified”, according to the Governor of the Bank of Spain and Jose Luis Escrivy, a member of the ECB Governing Council.

Talking to the Financial Times before the bank’s decision next week, Escriv warned that the tariffs imposed by Donald Trump were launching a “very significant negative shock” in a “economic activity.”

He suggested that US policies could question the location of the dollar as a reserve currency and a shelter.

Escrivy says that on Wednesday, it was “uncertain” from the obvious measures, including high -so -called mutual tariffs, adding that financial policymakers “are closely monitoring it”.

Spain’s top central banker-who took over as minister’s duties in the socialist-led government last September, emphasized that influence on inflation in the Euro region “will depend on European reactions, perhaps in the case of more broadly fabulous policies.”

Germany has looted its strict financial rules to allow higher orrow to accept defense expenditure and infrastructure investment funds last month and the EU is making more vacation for the DEBT-based military expenditure.

Investors and analysts are now everything but the ECB will definitely reduce interest rates for the seventh time since June, April 2 expects a possible break before Trump’s far -reaching tariff announces.

Bundesbank President Jocheim Nagel, another Hawkish voice, said on Tuesday that the ECB would “be bit” to strengthen the “elasticity” of the coin region in the current financial turmoil, noting that the central bank was inflation to meet 2 percent of the target.

Escrivi suggested that international investors could rebuild the role of the US dollar. He argued that in recent decades “US economy, US dollar and US financial market” the “central role” that promoted the multilateral contracts and rules that has been promoted.

“Economic agents and authorities everywhere are now rebuilding what the latest US principles mean for many of those elements, and some of them have the reason for the suspicion that this national world is played in the future,” he said.

Escrive suggested that the Euro could emerge as a more interesting option. “We can offer a very large economic zone and a solid coin, which benefits from stability and prediction which is the result of appropriate economic policies and rules of law.”

On Wednesday, Escrivi told Spanish Television that the central bank would correct its growth forecast for the Spanish economy this year, which is currently 2.7 percent.

Spain’s top central banker said that drama was reduced in the global equity market in early April “there was an experiment for the global financial system resilient”, but added that the “markets” are working on a “well -disciplined” system, “the idea that the system is much more elastic than it is now.

Bernie Jopson’s Additional Report