” It is open whether Greece may need another writedown on its debt, but such a step should only be taken once Athens has implemented necessary structural reforms, European Central Bank Governing Council member Jens Weidmann said on Friday.
“I regard as an open question whether the need for a haircut in debt arises,” Weidmann, who also heads the German Bundesbank, said at an event organized by the newspaper Sueddeutsche Zeitung in Berlin.
“One can pose the question whether the leap of faith that you give (with a haircut) sets the right incentives or whether it would not make sense, to set a haircut, which one will need in the end to regain capital market access, as a perspective for when the reforms… have been implemented.”
Weidmann also said he was confident France would be able to fix its budget and added that the population profile works to the country’s advantage.”
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