29.06.201709:44:00UTC+00Weidmann Says Govt Bond Purchases Put ECB Dangerously Close To Fiscal Policy

Buying government bonds placed monetary policy dangerously close to fiscal policy, European Central Bank policymaker Jens Weidmann said Thursday.

Speaking at an event to mark the 60th anniversary of the Bundesbank, which he heads, Weidmann said it was better to interpret the monetary policy mandate closely and to have a clear separation between monetary and fiscal policy.

"Otherwise, the independence of the central bank might be questioned sooner or later," he said.

The Bundesbank chief is a well-known opponent of the ECB's government bond purchases.

Weidmann also said that there was a lack of willingness among euro area countries to relocate decision-making powers to the European level, or even to consult the European community on different matters.

"This is not only a matter of dealing with the budgetary rules, but also of the new rules for the handling of banks - especially in the countries that demand more mutual liability," he said.