Bundesbank issues warning on promissory-note deal

Germany’s central bank has sounded a warning note over the recently negotiated deal on Ireland's promissory note.

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In its monthly report, the Bundesbank said of the deal:

"This approach underlines the increasingly close and problematic ties between monetary and fiscal policy in the European monetary union," the Bundesbank said in the report.

"Responsibility for providing any assistance to individual member states in servicing their sovereign debts should lie with the European Stability Mechanism (ESM), which was established for this purpose."