Bundesbank chief claims ECB cannot solve eurozone crisis

8 July 2013

The European Central Bank (ECB) cannot solve the eurozone crisis, according to Bundesbank chief Jens Weidmann.

Reuters reports he told economists at a conference in Aix-en-Provence, southern France, monetary policy has done much to absorb the economic consequences, but it cannot actually rectify the problem.

This comes just three days after the ECB said it intended to keep interest rates at record lows for an extended period and may yet cut them further.

Benoit Coeure was at the same conference and explained the central bank's decision to issue these measure and urged governments to move to tackle structural problems.

"The eurozone is on the mend, it must be at peace, protected, be allowed to heal," he remarked.

The ECB made has made this stance in response to turbulence in the markets caused by the US Federal Reserve's plan to slow its monetary stimulus.

Olli Rehn, the EU's top economic official, welcomed the policy, saying it was needed to preserve recovery in Europe.

By Gary Cooper

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