Bloomberg News

Bundesbank’s Weidmann Rejects Unconditional Aid, SZ Reports

June 22, 2012

Bundesbank President Jens Weidmann has rejected calls by Italian Prime Minister Mario Monti that billions of euros in aid should be provided without having to meet the conditions imposed, Sueddeutsche Zeitung reported in a preview of an article to appear today.

Weidmann added in an interview that the proposal would violate European Union agreements on state financing through “printing presses,” the newspaper said.

Monti had called for the European Central Bank to buy sovereign bonds, including from Spain and Italy, to reduce their borrowing costs, the newspaper said. Monetary policy should be tightened to ensure that the financial costs to member countries will be limited, SZ cited Weidmann as saying.

To contact the reporter on this story: James Kraus in London at jkraus2@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net


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