BoE policy maker Adam Posen said during a panel on the European financial crisis at Williams College in Williamstown, Massachusetts on Monday that despite the measures taken by the ECB, unemployment in the euro area is more likely to stay high over the coming two years.

However, he clarified that the only exception would be Germany as he expects a decline in its jobless rate to below 5% by mid-2014, yet, on the flip side, some rise in inflation is predicted.