ECB should not buy troubled state bonds – Merkel ally

FXStreet (Mumbai) - A senior member of the German Chancellor Angela Merkel’s party warned the European Central Bank (ECB) not to buy bonds of troubles nations like Greece, stating that such an act would slow down the reform process.

Michael Fuchs, deputy parliamentary floor leader of the German chancellor's Christian Democrats (CDU), told Deutschlandfunk radio on Friday: "We shouldn't pump extra money into these states, but rather make sure they continue along the reform path. "I'd be grateful if (ECB President Mario) Mr Draghi would make statements along these lines."

Meanwhile, Mr. Draghi, in an interview with German financial daily Handelsblatt published on Friday, said the risk of the central bank not fulfilling its price stability mandate was higher now than half a year ago, while stating readiness to act soon even with sovereign QE if needed.