BERLIN (MNI) – German Economics Minister Philipp Roesler on
Thursday backed Bundesbank President Jens Weidmann over the latter’s
criticism of the new bond-buying program of the European Central Bank.
“Weidmann deserves the support of the whole government,” said
Roesler, who heads the free-market orientated FDP, the junior partner in
Chancellor Angela Merkel’s coalition government.
Merkel and Finance Minister Wolfgang Schaeuble, both members of the
larger CDU, recently criticized Weidmann for his public complaints about
the ECB’s bond-buying program, the OMT. Merkel and Schaeuble have both
made clear that they support the OMT.
Roesler, however, said today he was “very skeptical” about the OMT
and mounting demands that the ECB should allow a haircut on the Greek
bonds it is holding.
“Whoever believes one can use the ECB in the crisis is misusing
it,” the minister reckoned.
Due to the debt crisis and the global economic slowing, German
economic developments “will likely become more difficult over the coming
months,” Roesler cautioned.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: M$X$$$,MGX$$$,M$$CR$,M$G$$$,MT$$$$,M$$EC$]
