2012.05.02 11:57:57 ECB's Weidmann Warns Against Easing Fiscal Consolidation - Report

FRANKFURT (Dow Jones)--Jens Weidmann, chief of the German central bank who carries considerable weight among European Central Bank rate-setters, stepped up his defense of fiscal rectitude in an interview published Wednesday. His comments come amid a raging debate in Europe about whether governments should continue to pursue fiscal rectitude amid signs that budget cutbacks are impeding economic growth. "Precisely in times of uncertainty it is important that policy remains credible and sticks to that which it has committed itself," he tells the German weekly Die Zeit. "A forceful budget restructuring and decisive structural reforms are the best growth policy, because through this confidence is created and the capacity of the economy is strengthened," the Deutsche Bundesbank president said. Last week ECB President Mario Draghi spoke of the need for the euro zone to adopt a "growth pact" to complement existing deals that enforce fiscal discipline. Draghi has not been very specific on what this would entail, but it is understood that he was referring to structural reforms in the euro zone economy and not to an increase in debt-financed stimulus. -By Todd Buell, Dow Jones Newswires, +49-6929725514, todd.buell@dowjones.com (END) Dow Jones Newswires May 02, 2012 05:57 ET (09:57 GMT)