BERLIN (MNI) – A lasting solution to the Eurozone’s debt crisis can
be reached only through more budget consolidation and structural
reforms, in the view of European Central Bank Governing Council member
Jens Weidmann.
While Eurozone leaders pledged at their latest summit to undertake
such measures, “this must now be proven by actions,” the president of
the Bundesbank wrote in an op-ed piece for the German business daily
Handelsblatt published Monday.
Weidmann argued that putting into practice the latest decisions to
recapitalize banks, ease Greece’s debt and leverage the European
Financial Stability Facility (EFSF) requires strict conditionality on
any aid.
The Governing Council member deplored that even after last week’s
summit, the future shape of the EMU remains unclear. He warned that
Eurozone states were increasingly taking on joint risks while leaving
budget powers with national governments.
Eurozone leaders unveiled a sweeping rescue package last week that
included cutting Greece’s private-sector debt by half and boosting the
size of the EFSF to E1 trillion.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: MT$$$$,M$X$$$,MGX$$$,M$$CR$,MFX$$$,M$G$$$,M$$EC$]
