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"The ECB's role is to ensure the stability of the euro"
- Valerie Pecresse, French government spokeswoman
Germany and France, two key economies of the European Union, clashed over the role of the European Central Bank in financial crisis management, after modest bond sales by Italy and Spain failed to win back investor confidence.
"The ECB's role is to ensure the stability of the euro, but also the financial stability of Europe. We trust that the ECB will take the necessary measures to ensure financial stability in Europe," French government spokeswoman Valerie Pecresse said after a cabinet meeting in Paris.
"I'm convinced that none of these approaches [ECB large scale intervention in the bond market, joint euro-area bonds], if applied right now, would bring about a solution of this crisis," Merkel said in a speech in Berlin on Thursday. "If politicians believe the ECB can solve the problem of the euro's weakness, then they're trying to convince themselves of something that won't happen."