FRANKFURT (MNI) – The rescue package agreed on May 10 has put
severe strains on institutional foundations of the Eurozone and urgent
reforms are needed to ensure solidity ahead, European Central Bank
Governing Council member Axel Weber said Wednesday.
“With these decisions, the institutional foundations of the
monetary union are put under strain,” Weber said in a statement to
German parliamentarians.
“For the long-term solidity of the currency union it is decisive
that the small window of opportunity for reform not be utilised,” he
asserted.
Most importantly, the rules of the Stability and Growth Pact must
be reinforced and sanctions must be imposed in a more automatic manner,
Weber assessed.
“To counter the additional risks for the sustainability of public
finances, it is indispensably and urgently necessary to toughen the
fiscal rules,” said Weber.
The head of the Bundesbank also reiterated his support for an
insolvency mechanism for states.
–Frankfurt bureau tel.: +49 69 720 142. Email: frankfurt@marketnews.com
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