A number of states in the euro zone's periphery are still suffering from weak economies and fiscal challenges, despite recent progress, Joerg Asmussen, executive board member of the European Central Bank, said in an interview with Germany's Sueddeutsche Zeitung published Wednesday.
Meanwhile, German Finance Minister Wolfgang Schaeuble continues to have reservations about a bailout for Cyprus, the newspaper reported separately.
The situation in Greece is still serious, despite it having run "two-thirds" of the race already, Mr. Asmussen said, noting that the country has lost over 20% of its gross domestic product since the start of the euro-zone sovereign debt crisis.
"This is something we have in Europe last seen after the fall of the Iron Curtain in some transition countries," he is quoted as saying by the German newspaper.
Spain's finances continue to be bogged down by an overburdened health system, Mr. Asmussen said. While the situation has improved to a certain extent, it is still troubling.
"A major reform of the health system is needed, but it'll be even more difficult than pension reform," the euro-zone central banker warned. Mr. Asmussen also heaped praise on Portugal for having "done many things right, but the economy continues to shrink."
He noted that Portugal's development is also closely linked to the recovery of its neighbor Spain.
Mr. Schaeuble continues to have reservations about a Cyprus bailout, putting pressure on negotiations between euro- zone countries, the European Commission and the ECB, Sueddeutsche Zeitung reports, citing government sources.
Cyprus made a request for a bailout in the summer of 2012, but Germany and other euro-zone countries have expressed concerns about suspected money laundering involving Russian account holders in the country, among other issues.
As opposed to previous statements from Mr. Asmussen, Mr. Schaeuble continues to argue that Cyprus, whose GDP represents 0.2% of the euro-zone GDP, is not systemically relevant for the euro zone, the newspaper reported.
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Meanwhile, German Finance Minister Wolfgang Schaeuble continues to have reservations about a bailout for Cyprus, the newspaper reported separately.
The situation in Greece is still serious, despite it having run "two-thirds" of the race already, Mr. Asmussen said, noting that the country has lost over 20% of its gross domestic product since the start of the euro-zone sovereign debt crisis.
"This is something we have in Europe last seen after the fall of the Iron Curtain in some transition countries," he is quoted as saying by the German newspaper.
Spain's finances continue to be bogged down by an overburdened health system, Mr. Asmussen said. While the situation has improved to a certain extent, it is still troubling.
"A major reform of the health system is needed, but it'll be even more difficult than pension reform," the euro-zone central banker warned. Mr. Asmussen also heaped praise on Portugal for having "done many things right, but the economy continues to shrink."
He noted that Portugal's development is also closely linked to the recovery of its neighbor Spain.
Mr. Schaeuble continues to have reservations about a Cyprus bailout, putting pressure on negotiations between euro- zone countries, the European Commission and the ECB, Sueddeutsche Zeitung reports, citing government sources.
Cyprus made a request for a bailout in the summer of 2012, but Germany and other euro-zone countries have expressed concerns about suspected money laundering involving Russian account holders in the country, among other issues.
As opposed to previous statements from Mr. Asmussen, Mr. Schaeuble continues to argue that Cyprus, whose GDP represents 0.2% of the euro-zone GDP, is not systemically relevant for the euro zone, the newspaper reported.
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