27 Nov 2011

No more arguing in public over ECB role

9:07 am on 27 November 2011

President Nicolas Sarkozy of France and Chancellor Angela Merkel of the Germany have agreed to stop arguing in public over whether the European Central Bank should do more to resolve the eurozone debt crisis.

The two say they will propose changes to European Union treaties to tighten budget discipline among the countries using the single currency.

No details of the modifications have been issued yet, but Mrs Merkel said they would not change the role of the European Central Bank.

Germany opposes greater involvement for the ECB in bailing out troubled economies.

The BBC reports the meeting was held a day after a German bond auction failed to raise the target amount.

On Wednesday, Germany sold 3.6 billion euros worth of 10-year bonds, out of 6 billion euros on offer.

The Bundesbank said on Thursday that reports it had bought some of the remaining bonds were incorrect.

In an official statement, the central bank said bonds that were not taken up by investors in an auction were sold later on the secondary market.