FRANKFURT (Reuters) – European Central Bank Executive Board member Yves Mersch said capital controls were possible under exceptional circumstances when asked about such taking such measures in Greece in an interview in Spain’s La Vanguardia newspaper on Thursday.
“In an extraordinary situation, each country has to call on exceptional measures as the case requires. Talking about them beforehand could have negative effects on the market,” Mersch told the paper when asked if capital controls would be useful in Greece.
Asked if Athens could default on its debt commitments within the euro zone, he said: “There have been defaults in the United States and other monetary unions, with no political consequences. What matters is European countries’ perception of political cohesion and their willingness to remain together.”
(Writing by Hugh Lawson; editing by John O’Donnell)