German Bundesbank President Jens Weidmann said that the Euro currency union is not yet “crisis proof in a durable way”. He pointed to the recent financial market turbulence in Italy as it “illustrates” that.
Weidmann also said it would be “tragic” in the reforms and fiscal consolidations achieved during the global financial crisis are rolled back. He supports some of the proposals of German Chancellor Angela Merkel and French President Emmanuel Macron. They include common backstop for failing banks. However, Weidmann disagree to joint insurance for deposits, until the balance sheets are cleaned up.
The reforms will be discussed as a EU summit on June 28-29.
