The European Central Bank should buy the debt of the most indebted European Union countries to stem the bloc’s financial crisis, Le Monde said, citing an interview with Gerard Longuet, head of the ruling UMP party in the French Senate.
As the “common currency of diverse economies” the euro is at an acceptable level for the strongest among them and an “unbearable” level for the weakest, Longuet told the newspaper. Without the ability to devalue currencies, differences in productivity, competitiveness and government finances within the EU are “too large” and buying debt is “the only solution” for the bank, the newspaper cited Longuet as saying.
Buying government debt would weaken the euro in the short term and require “drastic efforts” on productivity and reform of the finances of the weakest countries, Longuet told the newspaper.
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