Buba head says EU crisis not over yet

Bundesbank chief and ECB Governing Council member Jens Weidmann, who presented the German central bank’s results in the Europen morning, said that inflationary pressures in the Eurozone are subsiding. This is an indication that Germany might be loosening its opposition towards ECB’s rate cut.

The Buba head added however that despite the calm on financial markets the Eurozone debt crisis is not over yet and that governments should implement structural reforms in order to make head against it.

Weidmann said that the German economy is also still feeling the negative influence of the crisis and that “only some of the confidence lost as a result of crisis has been recovered so far,” but that it should gradually recover in the course of 2013. He also expressed uncertainty about the progress of the reform programs in France, Italy and Cyprus.