FRANKFURT: German central bank Chief Axel Weber warned Tuesday that the euro-zone might pay a high price for financial reforms that are not needed, but will emerge stronger from its debt crisis if founding principles are adhered to.
Weber said in an opinion piece written for the Financial Times that the essential principles remained "subsidiary, responsibility of individual member countries and no-bailout" of those who do not put their finances in order.
The outgoing Bundesbank head reiterated scepticism over proposals to allow the euro-zone's future rescue mechanism to buy government bonds or lend money to heavily-indebted countries at reduced rates.
The European stability mechanism, which is to take effect in 2013, should provide support "at non-concessional rates only," Weber said.
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