FRANKFURT (MNI) – The European Central Bank should be able to
ensure price stability for the Eurozone, but that may mean a period of
higher inflation in Germany, Bundesbank President Jens Weidmann said in
an interview with German daily Bild Zeitung on Friday.
In the ECB Governing Council, “I consistently advocate price
stability for the euro area. To achieve this, it is now key that the
guardians of the currency don’t let themselves be put under the yoke of
fiscal policy,” Weidmann said. “If we stick to this principle, there is
no danger that inflation will get out of control.”
Still, in Germany inflation may exceed previous past rates and
surpass the target the ECB has set for the Eurozone average.
“The price stability target is just under 2% for the euro area. For
many years, Germany was below the average. Given strong economic
developments and low unemployment levels, we could now temporarily be
above the average,” Weidmann said.
-Frankfurt bureau tel.: +49-69-720 142 Email: frankfurt@marketnews.com
[TOPICS: M$X$$$,M$$EC$,M$G$$$,MGX$$$]
