FRANKFURT: Germany's economy minister on Saturday renewed his call for the introduction of an orderly insolvency procedure in European treaties for sovereign states that break budget deficit rules.
"There must be consequences and these sanctions must be automatic starting with reductions in EU money received from structural funds before then withdrawing voting rights in EU organs. And I believe there should be an orderly insolvency procedure introduced into European treaties," Philipp Roesler said.
Speaking to his Free Democrats at a party congress in Frankfurt, Roesler also said that the FDP would prevent the introduction of a transfer union and mutually backed euro bonds.
He added that it would be worrying if the European Central Bank were to engage in large-scale bond buying against the advice of the Bundesbank. The newly expanded euro zone bailout fund should prevent "this absurdity" he said.
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