Madrid, December 13 (Thomson Financial) .- The Bundesbank President Jens Weidmann, considered that the benefits of buying sovereign bonds by the European Central Bank (ECB) “there would outweigh the costs”, so he favored before undertaking this program, see the effect of the measures already taken.
Weidmann has been well expressed in an interview with several media outlets, including El País, and collected by Efe, which has insisted that in a monetary union “buying bonds entails a series of problems.”
Asked Can, which advocates a debt restructuring, said to stop pay “substantial risks that would damage the economy and could cut off access to capital markets.”
“If local banks have a large part of the public debt, also jeopardized the solvency of the financial system and savings of citizens, “added Weidmann, for whom if a country decides not to pay part of the debt would be difficult to count on the solidarity of other countries.
In this sense, and the reaction would Berlin and Frankfurt to win can, said that many parties seeking votes with Eurosceptic or populist ideas, and that the best response is to offer reliable prospects and explain the government’s actions.
” There are no simple recipes or shortcuts to achieve higher growth and lower unemployment. These ideas are dangerous, as they often lead to greater disappointment, “said Weidmann, who has indicated that the ECB has no pressure to act quickly by a possible scenario of deflation and monetary policy should take seriously its mandate and respect their límites.COM
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