ECB’s Weber Says Emergency Support Must Be Tied to Conditions

European Central Bank Governing Council member Axel Weber said future emergency support to euro- region member states must be tied to “strict and painful” conditions to encourage governments to stick to budget rules.

“A temporary financial support for member states should remain an option at best used only if there’s a clear, considerable contagion risk for the rest of the currency union and if, secondly, the use is tied to strict and painful conditions,” Weber said at an event in Berlin today. Funds should be raised by individual member nations rather than through a joint measure such as Eurobonds, he said.