Otto Thoresen calls for speedy decision-making to narrow bond spreads

Otto Thoresen ABI

ABI director general Otto Thoresen has called for politicians to show stronger leadership in solving the eurozone crisis.

Thoresen was speaking as central banks pumped billions of dollars into European money markets to prevent a dollar shortage and subsequent credit crunch.

European politicians meet in Brussels on Thursday next week for a crunch summit on solving the eurozone debt crisis.

Thoresen said: “Everyone involved around the financial sector is looking for a more stable outlook. The key to unlocking that is decision-making. We need more certainty about the future and more speed around decision-making.

Loading the player...

“The objective around that would be to narrow spreads on government bonds, it would be to show a clear way forward for those countries who we know are basically solvent.”

Thoresen represents a powerful voice in the financial sector, as insurers hold over £1trillion under asset management.

They also invest their own capital in European government bonds, so have a strong interest in seeing stability in the sovereign debt markets.

European politicians need insurers to help solve the sovereign debt crisis by hoovering up government debt across the continent next year.