Bloomberg News

ECB’s Asmussen Says Bundesbank Isn’t Isolated, Rundschau Reports

August 20, 2012

European Central Bank Executive Board member Joerg Asmussen said Germany’s Bundesbank isn’t isolated because of its opposition to bond purchases, Frankfurter Rundschau reported, citing an interview.

“Nobody should try to create the impression that the Bundesbank or its president are isolated,” Asmussen was quoted as saying. Asked if the Bundesbank’s concerns are justified, Asmussen said the ECB acts within its mandate to guarantee price stability. “A currency can only be stabile if there are no doubts about its survival. We’re working on that in the ECB.”

He said the ECB’s new bond-purchase program will be “better conceived” than the previous one because it will act in unison with Europe’s bailout funds, the newspaper said.

“The mistake with Italy last summer, when the ECB bought bonds and the time wasn’t been used for necessary adjustments, mustn’t be repeated,” he said, according to the newspaper.

To contact the reporter on this story: Stefan Riecher in Frankfurt at sriecher@bloomberg.net

To contact the editor responsible for this story: Matthew Brockett at mbrockett1@bloomberg.net


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