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Bundesbank chief: No bailout guarantee for Italy
Photo: DPA

Bundesbank chief: No bailout guarantee for Italy

Published: 16 Mar 2013 14:15 GMT+01:00
Updated: 16 Mar 2013 14:15 GMT+01:00

The head of Germany's central bank has told Italy to stick to its pledges of budget cuts and economic reforms, warning there was no guarantee of being bailed out.

"Citizens and the government decide national policy, and must bear the consequences," Bundesbank president Jens Weidmann told the weekly Focus magazine, according to interview excerpts released Saturday.

"When major political players in Italy discuss a reversal of reforms or even an exit of Italy from the eurozone and consequently Italian bond yields rise, this should not and cannot be a reason for the intervention of the central bank," Weidmann said.

Elections in Italy last month ended in a stalemate in parliament between right and left. Campaigning had been marked by a reaction against the austerity measures pushed by German Chancellor Angela Merkel in a bid to beat the eurozone debt crisis that has propelled the 17-nation bloc into recession.

On Wednesday Beppe Grillo, head of the anti-establishment Five Star Movement which unexpectedly captured a quarter of the vote in the inconclusive Italian elections, said Italy was already essentially out of the euro.

Grillo has so far refused to form a coalition with Pier Luigi Bersani, whose leftist party came out on top in the elections, nor with ex-premier Silvio Berlusconi's conservatives. His party has spooked Europe with its promise to hold a referendum on the euro and cancel Italy's debts.

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Your comments about this article

14:52 March 16, 2013 by raben
This is just a show for the German voters...

Off course Italy will be bailed out, whatever happens..
15:33 March 16, 2013 by liondens
Did they say the same thing about the Spain before they bailed the spanish banks out last year? Oh, I think he meant no bail for Italy, but for Italian banks then hell YES! Right? These people who dumb enough to believe them anyway? But then again...if no one believes them why they're continus to be incharged? This kind of democracy only exists in europe.
20:59 March 16, 2013 by US-TommyBoy
Rings hollow.

But the real reason I am here reading is I was wondering about the Euro Zone bailout (loans) to Cyprus and why this is the first time that they demanded regular depositors forfeit some money to stave off bankruptcy despite the wider run on savings that it might (will) cause. Not to mention riots.

http://www.reuters.com/article/2013/03/16/us-eurozone-cyprus-idUSBRE92E02220130316

Maybe this paper does not update news like Reuters. Reuters got it from Brussels.

if I was in Germany, I would be mighty fearful....even more fearful than I am here in the US.
16:03 March 18, 2013 by tangledeuro
EU (read it Germany) will bailout no-one, but Germany only if ever required..!!
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