ECB's Lautenschlaeger (Germany): sharing fiscal risk can reduce incentives to pursue sound fiscal policies
- risk-sharing remains a problematic issue; an option is to introduce a risk weighting for govt bonds which rises along with the concentration risk
- monetary policy cannot create prosperity or solve institutional problems; structural reforms are needed
- criticism of ECB undermines trust in the institution
- reiterates ECB still has more ammunition; need to allow the currently implemented measure to take effect; now is not the time to talk about more measures