EU needs stronger budget rules, says Bundesbank chief

(AGI) Rome, June 24 - EU countries must not use "tricks" toweaken budget rules, Bundesbank President Jens Weidmann said onTuesday. Such initiatives could "cause massive shocks to thecurrency union," he said in an interview for German dailySueddeutsche Zeitung. Instead of weakening the fiscal rules ongovernment debt and deficits in the euro area, they should bestrengthened, he said. "We shouldn't forget that sustainableeconomic growth cannot develop on the basis of high levels ofdebt in the private or public sector," Mr Weidmann added. . .

(AGI) Rome, June 24 - EU countries must not use "tricks" toweaken budget rules, Bundesbank President Jens Weidmann said onTuesday. Such initiatives could "cause massive shocks to thecurrency union," he said in an interview for German dailySueddeutsche Zeitung. Instead of weakening the fiscal rules ongovernment debt and deficits in the euro area, they should bestrengthened, he said. "We shouldn't forget that sustainableeconomic growth cannot develop on the basis of high levels ofdebt in the private or public sector," Mr Weidmann added. . .