Bloomberg News

Mersch Says ECB Shouldn’t Be Used to Boost Europe’s Bailout Fund

October 25, 2011

Oct. 25 (Bloomberg) -- European Central Bank Governing Council member Yves Mersch said the ECB should not be used to boost the region’s bailout fund.

“It isn’t an option to turn to the central bank to expand the means of the rescue fund,” Mersch said, according to the text of an interview on Luxembourg television show Revue provided by the country’s central bank, which he heads. “Fiscal problems cannot be solved at the expense of a currency.”

Mersch added that “price stability is the soul of the ECB,” and said he does not think that will be called into question by the debt crisis.

The Luxembourg Central Bank governor also said it would not make sense for France to lose its AAA credit rating. “That would raise the question, why not Britain, which is much worse off,” he said, adding the reliance on rating companies should be reduced.

--Editor: Matthew Brockett

To contact the reporters on this story: Jeff Black in Frankfurt at jblack25@bloomberg.net; Stephanie Bodoni in Luxembourg at sbodoni@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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