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Berlin: ECB bond bailout only in return for reforms

Berlin: ECB bond bailout only in return for reforms

Help from the European Central Bank (ECB) for rising bond yields in some eurozone countries should come with conditions, said an adviser to German Finance Minister Christian Lindner.

In particular, in comments published today in the magazine Der Spiegel, Lindner’s economic adviser, Lars Feld, urged the ECB to impose conditions on any aid in order to promote economic reforms.

It is recalled that, as reported by Reuters on Monday, Germany reacted to the ECB’s promise to offer new support to the heavily indebted countries of the South, at the extraordinary meeting last month.

For his part, Feld told Der Spiegel that “anyone who wants money from the central bank must be prepared to provide something in return.”

“This includes reforms overseen by independent institutions; anything else would jeopardize the stability of the monetary union,” added the adviser to the German finance minister.

As Reuters notes, Feld’s comments have an unusually binding tone for a German government official on the policy of the ECB’s independent institution.

For his part, Finance Minister Lindner, of the business-friendly Free Democrats (FDP), has repeatedly pressed the ECB to tackle rising prices, saying last month it had a responsibility to do so.

Source: Capital



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