BUSINESS

ECB: Aid to EU members to be given under strict conditions

Financial aid to European Union nations will be granted under strict conditions, European Central Bank Executive Board member Juergen Stark said on Tuesday, Mediafax informs. In an interview with German daily Boersen-Zeitung, Stark said each Eurozone government is responsible for its own debts. “Its not our job to refinance governments,” he said. The policy maker stated that the central bank’s all operations are motivated by monetary policy and it will continue to be. Stark also said that the ECB will increase its interest rates when risks to price stability emerge. He noted that keeping low interest rate for an extended period would create undesirable side effects. Stark added the European Monetary Union’s no-bailout clause is not up for debate and the EMU is not on the road to a transfer union.

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