June 10, 2011
A German member of the European Central Bank urged governments to halt the "fruitless" discussion over a private-sector role in granting Greece additional support, further isolating the German government's position, which it reiterated Friday, that such involvement must be a condition for more aid.
"There is no need for private-sector involvement," ECB executive board member Jürgen Stark told reporters Friday at an annual conference of ECB officials and private-sector economists and academics. "I see it only as a political issue for political reasons, not for economic reasons."
Mr. Stark's opposition to any Greek debt restructuring echoed the position staked out by ECB President Jean-Claude Trichet at his monthly news conference on Thursday. But Mr. Stark's remarks were more blunt, and suggested the ECB's antirestructuring position is so entrenched that it can't compromise without seriously eroding its credibility.
Mr. Stark's opinions carry importance in Europe's largest economy. He is Germany's member on the ECB's Frankfurt-based executive board and is a former top Bundesbank official. He also is a key point person for the ECB on Greece. Mr. Stark directs the ECB's economics division, which contributes to the analysis of Greece used by its official lenders at the European Union and International Monetary Fund.
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