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Euro zone recovery strengthens but Brexit fallout a risk: Praet

Published 07/01/2016, 06:51 AM
© Reuters. European Central Bank executive board member Peter Praet attends the 2016 Institute of International Finance (IIF) Spring Membership meeting in Madrid

FRANKFURT (Reuters) - The euro zone's economy is recovering but still faces a number of risks, including the fallout from Britain's vote to leave the European Union, the European Central Bank's chief economist said on Friday.

"The ongoing recovery has shown signs of strengthening," Peter Praet said in remarks prepared for a speech in London. "And the ECB is determined to continue playing its pivotal role in consolidating the upswing in the economic cycle.

"At the same time, the euro area continues to be exposed to a number of uncertainties. Some are external, including the still-fragile global recovery and the impact of the UK referendum. But some are also internal."

© Reuters. European Central Bank executive board member Peter Praet attends the 2016 Institute of International Finance (IIF) Spring Membership meeting in Madrid

Among internal sources of uncertainty Praet singled out a lack of clarity over the future of the monetary union, starting from an incomplete banking union.

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