UPDATE 1-Ireland can be fixed, no drama on euro -ECB’s Makuch

* Ireland’s issues not pleasant, can be fixed

* Euro slightly overvalued, has long-term prospects

* Recovery gradual but uneven, long-term rates a risk

(Adds comments, wraps earlier story)

BRATISLAVA, Nov 25 (BestGrowthStock) – Ireland’s troubles are not
good but they can be fixed and there is “no drama” in the euro’s
slide to a two-month low, European Central Bank Governing
Council member Jozef Makuch said on Thursday.

“The Irish issue is not pleasant, but it can be solved,”
Makuch told a business conference.

Ireland, which has become the second euro zone member after
Greece to seek EU/IMF help to ease a painful debt crisis,
announced plans on Wednesday to slash welfare spending and raise
taxes to help pay for its banking crisis and meet the terms of
the international bailout.

The Slovak central bank governor said the euro was slightly
overvalued but was a stable, strong currency.

“The euro is slightly overvalued, no drama, it hit a
two-month low.”

“From the long-term perspective, I’m an optimist about the
euro.”

ECB Governing Council member Axel Weber said on Wednesday he
was convinced the euro would survive and that a financial safety
net created by euro zone governments would be enough to
withstand speculators. [ID:nLDE6AN28M]

Makuch said expectations were for a gradual but uneven
recovery in the euro zone, adding that higher-than-expected
long-term interest rates, more fiscal tightening and higher
taxes also posed a danger and were among risks to the outlook.

He declined to comment on monetary policy and the ECB’s exit
strategy.
(Reporting by Martin Santa; Editing by Susan Fenton)

UPDATE 1-Ireland can be fixed, no drama on euro -ECB’s Makuch