Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

ECB's Weidmann urges honest troika report on Greece - paper

11/10/2012 | 07:06am US/Eastern

Europe's politicians seem to have already decided to continue funding Greece, European Central Bank policymaker Jens Weidmann was quoted as saying on Saturday.

The ECB Governing Council member and Bundesbank chief said international lenders must still make an "unembellished and honest" assessment of the country's finances.

"Politicians have evidently decided to continue financing Greece," Weidmann was quoted as saying by German newspaper Rheinishe Post.

Asked if the report of the troika of lenders - the International Monetary Fund, European Commission and European Central Bank - on Greece could nonetheless be independent, Weidmann said this was problematic.

"How can you objectively assess the completion of a program, if you are too afraid of the consequences of a negative conclusion?" he said. "I am relying on the fact the troika will deliver both an unembellished and honest assessment of the situation in Greece before payments are delivered."

Weidmann said the ECB and national central banks within the euro zone had bought up a considerable amount of Greek debt and thereby become one of Greece's biggest creditors, but could not take a haircut on that debt.

"The central banks may not waive Greece's debt, that would be a direct transfer and therefore would be tantamount to a forbidden monetary financing of a state," he said.

ECB President Mario Draghi said earlier this week the ECB was unlikely to help Greece much further in its bailout because it was prohibited from providing direct aid.

Weidmann reiterated his criticism of the ECB's plan to buy up the debt of struggling euro zone states.

"I DID NOT THREATEN TO RESIGN"

"While strict conditionality has been agreed for the new government debt purchase program, it remains to be seen how binding this is," he said.

"Fundamentally, monetary policy must not end up in tow of fiscal policy. Experience shows that independence is decisive for a central bank to keep monetary value stable."

Weidmann denied reports that he had threatened to resign over the ECB's bond-buying plans: "I did not threaten to resign. When I took on this office, I knew what to expect. What would a resignation have brought?"

Asked if he felt abandoned by German Chancellor Angela Merkel, he said "no", saying that central banks and governments had different duties and interests.

Weidmann also said the euro would still exist in 10 years' time: "I am certain of this. Clearly there is the political will to keep the euro area as a whole."

Weidmann dismissed the calls of some German politicians for Germany to have higher voting rights in the ECB to better reflect its share of the ECB's risk burdens.

He said these calls had grown because of increased fears over the risks the ECB was taking on but that existing rules on voting rights were designed such that ECB policymakers did not pursue national interests.

"The right response is not to change voting rights but to return to a narrow definition of monetary policy."

The Bundesbank chief said the German government's goal to balance its budget in 2014 was sensible but could have been jeopardized by decisions made by Merkel's center-right coalition last Monday that went "in the opposite direction".

The coalition agreed to scrap an unpopular health surcharge and to introduce extra child benefits, hoping to bolster support in the countdown to elections next year.

(Reporting By Sarah Marsh; Editing by Pravin Char)

React to this article
Latest news
Date Title
01:01a The International Pole Dancing Competition "PoleArt 2015" to Be Held in Cyprus
01:01a The International Pole Dancing Competition "PoleArt 2015" to Be Held in Cyprus
12:51a LOBLAW : Strike deadline pushed back to July 11 as Loblaw workers vote on amended offer
12:45a COMMUNITY WEST BANCSHARES : James W. Lokey Appointed to Community West Bancshares Board of Directors
12:42a TOSHIBA : overstated profits to surge to 150 bil. yen (UPDATE1)
12:17a WEIBO : Market plunge leads to Weibo self-mockery
12:01a SOUTHWEST AIRLINES : Adobe, Southwest Airlines to Teach Brands How to Live Stream with Periscope
07/04 BEESTON ENTERPRISES : 7/7 Survivor Goes Back To Bombers' Hometown
07/03 GUANGZHOU BAIYUN AIRPORT : Knowledge City starts to take shape
07/03 CHINA SHIPBUILDING INDUSTRY : 87 Beijing companies promise investment
Latest news
Advertisement
Hot News 
NATERA : Nasdaq: NTRA) to Ring The Nasdaq Stock Market Opening Bell in Celebration of IPO
UBISENSE : Hit By Contract Delays, To Restructure Operations
OUTSOURCERY : New Debt Facilities from Vodafone
STADIUM : Trading In Line With China Facility Relocation On Track
ATARI : Last E.T. cartridges up for sale on eBay
Most Read News
07/03 MICROSOFT : Qorus Software is awarded Microsoft Silver Cloud Platform Competency
07/03 NATIONSTAR MORTGAGE : IMPORTANT INVESTOR ALERT: Goldberg Law PC Reminds Investors with Losses Greater Than $100,000 in Nationstar Mortgage Holdings Inc. of August 3, 2015 Deadline
07/03 VECTREN : work in New Albany at halfway point for 2015
07/03 HUSKY ENERGY : Undertaking Maintenance at Lloydminster Upgrader
07/03DJRivals Lurked Behind Aetna's Deal With Humana
Most recommended articles
07/03 Toshiba accounting errors may be over $800 million - source
07/03DJRivals Lurked Behind Aetna's Deal With Humana
07/03 New Credit Suisse CEO promises 'ruthlessly selective' review
07/03 K+S rejects Potash Corp's takeover approach as too low
07/03 What to Expect From the Greek Referendum