ECB President Wants Eurozone Debt Penalty
European Central Bank President Jean-Claude Trichet asked for harsher sanctions against debt-ridden Eurozone nations, in an interview with the German weekly magazine Der Spiegel.
"Member states should need to make a payment following the first violation of the criteria, and face a penalty for repeat offenses," Triche said.
He stated that there had been too much resistance to sanctions, and added that ECB΄s programme of buying government bonds was temporary.
"We will not do this for ever. This measure is, like all our extraordinary measures, temporary," Trichet said.
Moreover, a member of the Governing Council told Der Spiegel that five members of the Council -- including Bundesbank chief Axel Weber -- had voted against the bond buying programme when it was first proposed.
The majority on the ECB΄s governing council thinks eurozone debtor nations could buy back their own debt using fresh funds, Der Spiegel said, adding that Axel Weber is against such a move, since it could amount to redistribution of funds through the back door.
Regarding ECB’s interest rates, Trichet justified warning markets about possible rate hikes. “Price stability is according to the EU treaty our main priority.”
(capital.gr)