‘Euro-Area slump not temporary’

The slowdown in the euro-area economy should no longer be considered a “temporary dip” and the European Central Bank should prepare in case it gets worse, according to Governing Council member Olli Rehn.

“Growth in the euro area has slowed significantly recently,” the Finnish governor told Boersen-Zeitung in an interview published Thursday. “We cannot deny that there are doubts among market participants and the public about the ability of the central bank to achieve the price stability target.”

The 57-year old — who until recently was seen as a leading candidate to replace ECB president Mario Draghi before IMF chief Christine Lagarde was nominated earlier this week -- stressed that the Governing Council is analysing what options are best in terms of a policy response. The region’s slowdown has lasted for more than a year, and has been exacerbated by global trade tensions and political uncertainties that have weighed particularly on manufacturers.