According to Bundesbank Chief Jens Weidmann, the European Central Bank cannot solve the current Euro Zone crisis. Instead, the German Central Bank chief has urged the governments of the EU to get their economies 'in shape' as well as tighten their fiscal rules.
The remarks were made during the economists' conference held in Aiz-en-Provence in Southern France. It comes three days after the European Central Bank had declared that it would be intending to keep interest rates at record low levels for an even extended period of time with the option to further lower the rates all the more.
In his speech, Weidmann said, "Monetary policy has already done a lot to absorb the economic consequences of the crisis, but it cannot solve the crisis. This is the concensus of the Governing Council. The crisis has laid bare structural shortcomings. As such, they require structural solutions."
The German head is said to be the most hawkish member of the Governing Council and has said that banks should not intervene too much in the current economic crisis. Instead, he says that governments should implement reforms in their systems.
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