Oct. 27 (Bloomberg) -- Pacific Investment Management Co. Chief Executive Mohamed El-Erian said that today’s European Union accord has lowered, though not eliminated, the risk of the break up of the euro.
“This is a very important step, but it needs to be followed up,” El-Erian told a conference in Paris. “The problem for Europe is how to engage new capital. If you don’t attract new capital, interest rates will not come down, then the debt issue becomes deeper.”
“Concrete steps to promote growth and employment in eurozone” are also needed, he said. “If the eurozone doesn’t grow robustly it will be difficult to overcome the sovereign debt issues and difficult to addres bank fragility issues.”
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