German fin min: ECB would be wrong answer to crisis

BERLIN Wed Nov 16, 2011 9:50am EST

BERLIN Nov 16 (Reuters) - German Finance Minister Wolfgang Schaeuble said on Wednedsay that using the European Central Bank to tackle the euro zone debt crisis would be the "wrong solution" and it would create problems in the long run.

Schaeuble told a meeting of German conservatives alongside visiting Irish Prime Minister Enda Kenny that Europe would "pay a high price in the long run" if it ceded to pressure from markets and some governments to mobilise the independent central bank.

The Irish prime minister said he believed use of the ECB as an "ultimate tool to stop contagion" should be considered, though he acknowledged that he disagreed with Merkel on this point.

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