Economics
Lautenschlaeger Warns ECB Can’t Help Irresponsible Countries
- Everyone must be aware of their own tasks and act accordingly
- Italy’s high-spending budget plans sending bond yields surging
Sabine Lautenschlaeger, executive board member of the European Central Bank
Photographer: Andreas Arnold/BloombergThis article is for subscribers only.
The European Central Bank isn’t allowed to finance governments and mustn’t provide liquidity to insolvent banks, Executive Board member Sabine Lautenschlaeger said in comments likely aimed at Italy.
“While the ECB can contribute to the stability of the financial system, it cannot by itself ensure financial stability,” Lautenschlaeger, who is also vice chair of the ECB’s bank-supervision unit, said in the text of a speech in Malta on Friday. “It’s therefore important that all relevant actors are fully aware of their respective responsibilities for financial stability and act in a manner to live up to those responsibilities.”