Stark Says Every Euro Area State Must Be Liable for Its Own Debt

European Central Bank Executive Board member Juergen Stark said he’s not in favor of a joint issuance of bonds in the euro region.

“Every state must be liable for its own debt,” Stark was quoted as saying in an interview with Sueddeutsche Zeitung today when asked about his position on Eurobonds. “We’re definitely not on the way into a transfer union” where the euro region takes responsibility for fiscal problems in single member states, Stark added.

Stark said it’s the task of governments to solve the current sovereign debt crisis and not the business of the ECB, Sueddeutsche reported. “We’re not there to finance states,” he was quoted as saying.

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