Bundesbank Cools ECB Bond-Buying Talk

Germany’s top central banker cooled speculation that the European Central Bank will extend its role as European leaders pressed their case that a new fiscal accord will deliver the region from its two-year-old debt crisis. Bundesbank President Jens Weidmann told that while the new accord represents “progress,” the onus is on governments rather than the Frankfurt-based ECB to resolve the crisis with financial backing. German finance minister Wolfgang Schaeuble said euro- area policy makers will now focus on implementing the Dec. 9 pact to strengthen budget rules as quickly as possible. “The mandate for redistributing taxpayer money among member states clearly does not lie in monetary policy,” Weidmann told. “Financing of sovereign debt through central banks is and remains forbidden by treaty,” the central banker said. The Franco-German-led agreement, which provides tighter budget rules and an additional 200 billion euros ($267 billion) to the euro war chest, is part of an effort to reassure investors that European leaders can master the crisis.