LONDON: The European Central Bank should not print money to help ease the euro zone crisis as this would offer only short-term relief and could boost inflation and dissipate reform, German Foreign Minister Guido Westerwelle wrote on Friday in the Financial Times.
Westerwelle believes that putting the ECB's printing presses to work might at best bring temporary relief but would be a "momentous mistake" in the long run.
"In the end we would end up with a depreciated currency and an even more destabilised euro zone. The ECB's independence and firm commitment to price stability are of paramount importance to Europe's economy," he wrote in an op ed piece.
Westerwelle voiced opposition to ECB money printing as part of a plan to tackle the crisis, which also includes reforms and outlining a "clear-cut strategy for competitiveness and growth".
He highlighted the need to provide for the future and upgrade the monetary union to a stability union, which he said can only be achieved with sound budgeting by all member states.
He added that if Europe wishes to turn things around irreversibly, member states "will not be able to avoid amending the treaties."
"To overcome its weaknesses the euro zone needs deeper integration through tighter economic governance and tougher rules for the stability pact. The challenge is to manage this without creating a split within the EU."
"Treaty change will require considerable political will. But if we fail to muster the courage to do this now, Europe will remain permanently vulnerable to crisis," he wrote.
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