Bundesbank head warns Germany must remain eurozone 'anchor'

23rd October 2011, Comments 0 comments

Germany's role as the anchor of the eurozone must not be endangered through efforts to fight the debt crisis, the head of the German central bank said in an interview published Sunday.

Jens Weidmann told Bild am Sonntag that he did not want to speculate about the creditworthiness of countries but that the attempt to resolve the crisis could push financial limits as well as political ones.

"Germany's role as the anchor of stability of the monetary union must not be endangered," the Bundesbank president said.

Weidmann, who is also a member of the European Central Bank Governing Council, also voiced scepticism over a Greek "haircut" -- reducing the value of the debt its bank creditors hold.

"A haircut is not a universal remedy anyhow," he said.

"When the readiness for structural reforms is reduced because of this, it can even be dangerous."

However, he said he believed it was right to help countries during a crisis such as the current one "when they resolutely and consistently tackle their problems".

He also expressed understanding on people's concerns, saying: "I understand that citizens are worried about it."

© 2011 AFP

0 Comments To This Article