G20 countries want ECB to do more in crisis: report

3rd November 2011, Comments 0 comments

France, Italy, the United States and the EU Commission want the European Central Bank to do more to solve the eurozone debt crisis, according to a newspaper report released Thursday.

The daily Die Welt, in a pre-release of an article to be published in its Friday edition, said that at the G20 meeting, Paris, Rome, Washington and Brussels wanted the ECB to act more like its US counterpart, the Federal Reserve, and buy up bonds of debt-wracked countries on the primary markets.

So far, the limited purchases by the ECB has been on the secondary markets only, in an attempt to help ease the borrowing costs of the most indebted countries struggling to raise fresh funding.

Germany, for its part, is opposed to such a proposal, because it believes it would be tantamount to the ECB printing money to finance a country's debt, the newspaper said.

"The ECB isn't a Fed and not a Bank of England ... and the US way to more 'firepower' is a way we cannot pursue in Europe," a German government source said, following discussions ahead of the G20 summit in Cannes.

"The way we see the role of the ECB in Europe, and especially in Germany, is maybe not shared all over the world but is accepted everywhere because that is the way it is," the source said.

© 2011 AFP

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