BERLIN: A senior member of Angela Merkel’s party warned the ECB not to pour money into Greece and other struggling eurozone states through bond purchases, saying this would reduce pressure on them to enact much-needed reforms.
Michael Fuchs, deputy parliamentary floor leader of the German chancellor’s Christian Democrats (CDU), told Deutschlandfunk radio: “We shouldn’t pump extra money into these states, but rather make sure they continue along the reform path. “I’d be grateful if Mr Draghi (pictured) would make statements along these lines.”
In an interview, Draghi urged politicians to implement necessary reforms, reduce tax burdens and cut red tape to support a fragile eurozone recovery. “I expect there to be fierce discussion over this at the next ECB meeting,” said Fuchs, referring to opposition to the bond-buying plan by the head of the Bundesbank Jens Weidmann. The ECB’s next policy meeting is on January 22.
Fuchs has frequently expressed frustration felt by many German politicians and the public about the pace of reform in twice-bailed-out Greece. He was quoted as saying in a newspaper interview published on Wednesday that eurozone politicians were not obliged to rescue Greece as the country was no longer of systemic importance to the single currency bloc. Greece holds a general election just three days after the ECB meeting and polls suggest the left-wing Syriza party, which rejects the terms of Greece’s eurozone bailouts, will emerge as the strongest party. Reuters
