Weidmann: “ECB will suspend funding to Greece if the negotiations fail”

The President of the German Central Bank Jens Weidmann has warned that the European Central Bank will not carry on funding Greece, should the political negotiations with the country’s creditors fail.

When asked about the Emergency Liquidity Assistance given to Greek banks, Mr. Weidmann responded that the ECB’s role is not to fund countries. Mr. Weidmann gave a interview to three European newspapers, Italy’s La Stampa, Spain’s El Mundo and France’s Les Echos.

Although the German central banker avoided further referring to the ELA, he noted that the responsibility of Greece’s future in the euro lies with the Greek government and warned that should Athens miss a loan payment, it would be difficult to control the consequences.

While Mr. Weidmann argued that the survival of the euro is independent of the developments in Greece, he conceded that a Greek departure could transmit the crisis to other member states, thus altering the nature of the currency union. He has also campaigned for stricter fiscal rules in the Eurozone.