Where Europe Is Today

We're still in the middle of a substantial financial turmoil,according to Axel Weber of the European Central Bank's Governing Council,and it's very hard to say there's light at the end of the tunnel.Firms have to be competitive in any environment.They have to live with exchange rates.The ECB focuses on price stability,the rapidly-speaking central banker stated.

The Toll of Oil

Energy prices have taken a toll,in the view of Axel Weber,Deutsche Bundesbank President.There's little monetary policy can do about the price rises.The medium term is clouded by inflation risks that we simply have to take care of,said Mr.Weber,relaxing in a royal blue shirt.We really don't see a credit crunch,but weaker credit growth,he added.

Into the Euro-zone

Axel Weber,President of the Deutsche Bundesbank,the German central bank,and a member of the European Central Bank's Governing Council,has been reflecting on the ECB's July .25 increase in its key interest rate.Our argument was,we saw a substantial rise in the risk of inflation,Mr.Weber said.The move we did has to be seen against the substantial inflation risk.We've largely predicted a weaker second quarter in Europe,because the first was so strong.We see a weak spot in the summer-somewhat of a dry spell,but growth will be reasonable.Things will change maybe not until next year,Mr.Weber speculated.