Bloomberg News

Weidmann Says Sharing Risks Means Giving Up Budget Sovereignty

May 29, 2012

Bundesbank President Jens Weidmann said if euro-area governments want to share risks, they will need to give up some sovereignty over budgets.

“We have to take a fundamental decision: where do we want to go with the currency union?” Weidmann said today after a meeting with officials from Germany’s Ver.di trade union, according to an e-mailed statement from the union. “At the moment there is a trend toward a collectivization of the risks, but no corresponding willingness to give up national budgetary sovereignty.”

Weidmann, who sits on the European Central Bank’s Governing Council, said the ECB’s monetary policy is currently aimed at preventing an escalation of the European debt crisis, according to Ver.di. Weidmann also said experience suggests better regulation of financial markets is needed.

To contact the reporter on this story: Joseph de Weck in Frankfurt at jdeweck@bloomberg.net

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


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