ECB's de Guindos sees risk of reopening too soon after lockdown

FILE PHOTO: Luis de Guindos, vice-president of the European Central Bank, speaks during a Reuters Breakingviews event in New York, U.S., April 25, 2019. REUTERS/Brendan McDermid

FRANKFURT (Reuters) - The euro zone economy may be in for more pain if measures aimed at containing the coronavirus outbreak are eased too soon, European Central Bank Vice President Luis de Guindos said on Monday.

“There are substantial downside risks, in particular if the easing of containment measures turns out to be premature or their impact on productive capacity is more persistent,” de Guindos told an event in Frankfurt, the first he has attended in person in several weeks.

But de Guindos also said that the risk of the bloc’s economic crisis morphing into a financial crisis has “receded materially” since March.

Reporting By Francesco Canepa and Balazs Koranyi