FRANKFURT (Reuters) - European Central Bank money printing has given euro zone governments the chance to make structural reforms, a senior policy maker said on Monday, warning that a union without risk sharing was vulnerable.
“Our recent decision to expand our asset purchases ... has opened a unique window of opportunity for euro area governments to act together, remove structural obstacles to growth, and pull our economy out of the low growth, low confidence trap,” Benoit Coeure, a member of the ECB’s Executive Board, said in the text of a speech.
“In the long-term, a Union based on no risk-sharing will be vulnerable economically,” he said, adding that countries needed to share sovereignty over key structural reforms.
In the bond-buying or “quantitative easing” program, the risk falls chiefly on national central banks rather than the ECB, a concession made to Germany to reassure it that it would not end up shouldering the losses.
Reporting By John O'Donnell; Editing by Andrew Heavens