OESTRICH-WINKEL, Germany (MNI) – European governments have made it
clear that there will be no sovereign defaults in the Eurozone, European
Central Bank Governing Council member Axel Weber said Friday.
Greece did the right thing by turning to the IMF and the
international community to help it get out of its fiscal mess, the
president of Germany’s Bundesbank told an audience at a business school
here.
Nevertheless, Greece must remain an “absolutely exception” going
forward, Weber underscored, pleading for tougher budgetary rules in
Europe.
“The European governments have made clear that there will be no
sovereign defaults in the euro area,” he emphasized, pointing out that
they have not only put their signatures on this commitment but also one
trillion dollars in loans and guarantees, agreed to in May.
In the future, however, governments will have to consolidate their
budgets on their own, and sanctions must be levied against offenders, he
argued.
“Greece has done the right thing, Greece has turned to the IMF,” he
said. “Greece has now the program which will help, with the help of the
IMF and the international community, to get their house in order,” he
said.
“The pressure that the international community provides for Greece
to embark on a sustainable path will help them to put through the
necessary reforms,” he elaborated.
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–Frankfurt bureau; +49-69-720142; tbuell@marketnews.com
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