FRANKFURT (MNI) – Spain’s unilateral revision of its 2012 deficit
target with explicit reference to its national sovereignty shows that
the Eurozone’s fiscal compact will yet have to prove its credibility,
European Central Bank Governing Council member Jens Weidmann said
Tuesday.
The move shows that the fiscal compact thus far only exists on
paper, and it can only gain credibility if rules are adhered to,
Weidmann said.
It also highlights that within the monetary union “there is
little readiness to give up national sovereignty,” he added.
“This shows that the recent debate about a fiscal union is
misleading. What we are seeing is strengthening of the current
framework,” Weidmann said. Any additional pooling of sovereign risks
would therefore be problematic, he cautioned.
–Frankfurt bureau tel.: +49-69-720 142 Email: jtreeck@marketnews.com
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