It is hard to tell whether the economic crisis has worsened, but governments should pressure banks into lending more to customers, Eurogroup Chairman Jean-Claude Juncker said in remarks published on Monday. It would take a few months for the effects of the European Central Bank's record interest-rate cut last month to be felt, and both 2009 and 2010 will be difficult years, Juncker said in an interview with French newspaper Le Figaro.
He hoped, however, that the situation would return to normal in 2011 and 2012. Asked if the economic situation had worsened, Juncker said: "It is hard to say. We are swimming in the fog. I do not have the impression that the crisis has worsened but I am not certain either that the worst is behind us."
While banks were telling him there had been no reduction in their lending, companies were saying the opposite. "It is therefore logical to demand more commitments (to lend) from financial establishments. Governments must be able to put pressure on them," Juncker said.
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