The possible loosening of the
stability pact contemplating stringent fiscal policies for
European Union member states would be "fatal", Bundesbank
President Jens Weidmann said Tuesday.
Such a move "could send major shockwaves" through eurozone
countries, Weidmann said.
Earlier German Finance Minister Wolfgang Schaeuble said
loosening the stability pact and increasing debt would be the
"worst mistake" the European Union could make.
"It is necessary to "stick to the rules we agreed together,
no more, no less," insisted Schaeuble in reference to the strict
limits on government deficit and debt.
The comments came on the same day that Italian Premier
Matteo Renzi said the stability pact was just as much about
growth as it was about fiscal discipline.
"There is no possible stability without growth; without
growth there is no movement," he said, adding that Germany had
been one of the first countries to break the letter of the law a
decade ago.
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