September 5, 2012 / 10:38 AM / 7 years ago

Monti says ECB has scope to stabilize bond spreads

ROME (Reuters) - The European Central Bank has scope to take action to stabilize the borrowing costs of countries which have taken efforts to shore up their public finances, Italian Prime Minister Mario Monti said in a television interview broadcast on Wednesday.

Imbalances in the borrowing costs between various euro zone countries pose a threat to the stability of the currency bloc as a whole and the ECB was currently looking at how it could act to limit the imbalance, Monti said according to the transcript of the interview with regional station TG Norba 24.

“It is very important that it should remain within its mandate because this is in the interests of Germany, as it is of Italy and France,” Monti said.

“But there is space within the mandate and they are currently working out this space to contain excessive spreads,” he said.

He added that it was important that countries which received assistance from the ECB or from European Union stability mechanisms “should not waste the support as has happened on other occasions, including in Italy.”

Reporting By James Mackenzie

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