FRANKFURT (MNI) – The European Central Bank’s decisions to
purchase government bonds and to sterilize those purchases through
liquidity-absorbing operations were taken independently and will
contribute to a stable currency and low inflation, German Chancellor
Angela Merkel said Monday.
“After seeing the plan of the finance ministers, the ECB was
prepared to introduce supplementary measures, which it decided
independently by itself,” Merkel said, dismissing speculation that the
political leaders had pressured the central bank into action.
Merkel also said that the decision would result in no additional
money supply, thus safeguarding price stability.
The massive Eurozone stabilization program anounced early Monday
was necessary to ensure the stability of the common currency, Merkel
noted.
“This is not about the protection of stock exchanges or markets but
about the protection of the currency,” agreed Vice-Chancellor Guido
Westerwelle.
Merkel also assured that her government remains committed to a
stable currency.
“I am proud of the German stability culture and the appreciation of
a stable currency,” she said. “We have the responsibility to enforce as
much of this as possible.”
In defending this stability, the chancellor had fended off the
introduction of a eurobond. “That took a long time, because we had to
fight hard,” she said.
–Frankfurt newsroom: +49-69-720142; frankfurt@marketnews.com
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