LONDON Feb 28 The euro zone economy has clearly
improved over the past year but there is still work to be done
to haul its southern economies out of trouble, European Central
Bank policymaker Ewald Nowotny said on Thursday.
He admitted to nervousness around over an inconclusive
election in Italy this week but said it should not be overdone.
"Of course everyone's a bit nervous. (...) One should keep
things in perspective. I do not think there will be fundamental
change in the politics in Italy because there are just economic
necessities that you have to follow," he said.
"There was a bond auction yesterday that went quite well.
One shouldn't overdo it."