Norbert Barthle, a German coalition lawmaker and ally of Chancellor Angela Merkel, said there’s no reason why the temporary euro-area rescue fund shouldn’t buy government bonds to help ease tensions in the region.
The European Financial Stability Facility “was designed for moments like this and I don’t see any prima facie reason why it should not buy bonds as part of a concerted action,” Barthle, parliamentary budget spokesman for Merkel’s Christian Democratic Union, said in a phone interview responding to European Central Bank President Mario Draghi’s announcement.
“Even so, the rules of the fund have to be observed,” Bathle said. That means summoning the German parliament to vote on primary-market purchases and the Budget Committee “for secret deliberations in the secondary market.”
“Of course, I can neither speak for parliament as a whole or the ECB, but I can say the EFSF was created for a purpose and bond-buying is in the munual,” Barthle said.
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