VENICE, Italy (Reuters) - Countries must bear the consequences of their own fiscal decisions, the head of Germany’s Bundesbank said on Thursday, warning that any move to bail out a euro zone peer could lead to the spread of solvency doubts.
In his remarks, where he singled out Greece’s refusal to cooperate with the troika of inspectors from international lenders, Jens Weidmann also warned that there could be no sharing of fiscal responsibility without first ceding sovereignty.
“Member states remain fully responsible for the consequences of their own autonomous fiscal decisions,” Weidmann, who also sits on the European Central Bank’s Governing Council, said at an event in Venice.
“If market participants tend to see the monetary union as a system of mutual financial assistance in the event of serious trouble, doubts about a country’s solvency could spread more quickly to the other member states.”
Reporting By Frank Siebelt; Writing by John O'Donnell; Editing by Paul Carrel