The head of the German Central Bank Jens Weidmann has argued that the Greek government must take full ownership of the bailout program in order to improve financial conditions and estimated that based on the limited refinancing needs, Greek debt relief is not a major priority.
In an interview he gave to the Naftemporiki newspaper, Mr. Weidmann called the Greek government to not increase its deficits due to the refugee crisis.
According to the German central banker, the capital controls in Greece will be lifted by the Greek government which introduced them in the first place. Mr. Weidmann also noted that it is ‘premature’ to begin talks and speculation over the possibility of Greek bonds being included in the ECB’s quantitative easing (QE) program.
Finally, the German banker underlined that it is perhaps still too soon toe establish a common European deposit guarantee system, since it would ‘mutualize’ the risks that stem from national policies.
