Weidmann opposes allowing ESM to tap ECB financing

Reuters News
Posted: Jun 25, 2012 12:27 PM

HAMBURG, Germany (Reuters) - Bundesbank President Jens Weidmann said on Monday he opposed the idea of allowing the the euro zone's permanent bailout fund to access the European Central Bank's refinancing operations.

"I regard that as monetary financing," Weidmann told a forum in Hamburg, with regard to the European Stability Mechanism (ESM).

Weidmann added that the contagion effects from a Greek exit from the euro zone would be considerable, though Greece would suffer most. However, these contagion risks were not a reason for other euro zone states to be blackmailed by Athens, he said.