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Weidmann opposes any easing of reform efforts, criticises France

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Weidmann opposes any easing of reform efforts, criticises France

Thu, 09 May 2013
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Weidmann opposes any easing of reform efforts, criticises France

Bundesbank President Jens Weidmann has expressed concern over European countries easing their reform efforts.

He warned that resorting to stimulus packages that tackle high youth unemployment is not enough because it will not result in sustainable jobs.

"Youth unemployment in some countries is indeed dramatic," Weidmann was quoted as having said by German daily Westdeutsche Allgemeine Zeitung. "But short-term economic and spending programs and ever higher debt for following generations do not create the sustainable jobs that are urgently needed."

Weidman added that only competitive companies and a healthy economy can offer sustainable jobs. A pause in reforms would not help.

"In particular, now that we have stricter rules on reducing the deficit, we should not raise a question-mark over their credibility by exploiting their flexibility," he said.

Weidmann also criticized France for not sticking to its deficit targets, saying the Eurozone's second largest economy had to play a more decisive role in maintaining the credibility of the region's efforts.

SB