German central bank governor calls for further budget consolidation

Germany shall further strengthen its budget consolidation efforts, as the European economic powerhouse is obliged to set a positive example for the rest of other eurozone members, the German central bank governor said on Monday. "As an anchor of stability in monetary union, Germany bears a very special responsibility," said Jens Weidmann, the Bundesbank chief, in an interview with the Berlin-based daily newspaper Tagesspiegel. "So that Germany must not ease up on its efforts" to strike on the balance of its budget, Weidmann stressed, who is also a member of the European Central Bank's governing council. He added that "Germany should set an example" for other eurozone member countries to further consolidate on tight budgetary program. The German budget deficit has been lowered to some 20 billion euros (26 billion U.S. dollars) in 2011 thanks to the strong economic performance during the past two years. However, its budget deficits might rise to 26 billion euros (33.54 billion dollars) this year. Weidmann held that "one of the lessons learned from the current eurozone debts crisis is that the budget consolidation efforts cannot be spared," while the resolution hammered at EU summit in December to anchor budget stability onto the European treaties would be helpful in overcoming the debt crisis. He urged every EU member state to honor their promises on further tightening budget control, as the agreements should not just remain on paper