German Economy Minister Philipp Roesler said that any purchase of bonds from countries such as Spain and Italy by the European Central Bank must be linked to clear commitments to structural reform and budget discipline.
Roesler, head of the Free Democrats (FDP) who share power with Chancellor Angela Merkel's conservatives, also said the euro must not be allowed to fail due to a lack of effort by countries at the frontline of the eurozone debt crisis to overhaul their economies.
"ECB President Mario Draghi has himself emphasised that bond purchases can never replace structural reforms and budget discipline. We take him at his word. That is the right road to follow", Roesler, whose FDP has been more sceptical about bailouts than Merkel's Christian Democrats (CDU), said.
Roesler, who has previously said the notion of Greece leaving the eurozone has "lost its horror", said the failure of individual Member States to implement structural reforms could not be allowed to bring the single currency to its knees. "We have all agreed in the Fiscal Pact about the importance of budget discipline and reforms", he said. "There are no benefits without a trade-off. We are all convinced: we need a strong Europe with a strong currency but this currency must not be allowed to fail due to a lack of reforms in individual Member States."
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