Bundesbank chief presses Europe to pursue reforms

December 28, 2013 - 6:04 AM

BERLIN (AP) — Germany's central bank president is pressing struggling European countries to keep pursuing economic reforms and voicing concern that ultra-low interest rates could in the long term lighten pressure on politicians to stay the course.

Bundesbank chief and European Central Bank governing council member Jens Weidmann was quoted as telling Saturday's edition of German daily Bild that financial markets have calmed but "the crisis can flare up again." He said Europe needs "endurance and strong will" to see through its reform course.

The ECB has cut its main interest rate to a record-low 0.25 percent and may take further action amid economic weakness and low inflation. Weidmann, an anti-inflation hawk, said low rates are justified but cautioned that "low price pressure cannot be a warrant for loosening monetary policy at will."