The president of the central bank of Germany, Jens Weidmann, warned Saturday about the negative consequences of considering the eurozone crisis settled.
In a statement to be published in Sunday’s Frankfurter Allgemeine Zeitung newspaper, the head of the Bundesbank said that “the causes (of the crisis) have still not been removed.”
At the same time, he warned of the danger of people feeling that “politicians want nothing more to do with the crisis and are waiting for the central bank to pull the chestnuts out of the fire.”
All the European Central Bank, or ECB, can do is redistribute without limit the risks of solvency among countries of the eurozone, which offers a certain security but doesn’t immediately endow the system with any greater stability, he said.
“I fear risks related to stability, and see a danger of mixing fiscal and monetary policy,” Weidmann said.
The Eurosystem should not do anything resembling state financing, he warned.