Business & Finance

German central banker asserts EU must respect core principles

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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.

Copyright AFP (Agence France-Presse), 2011