Barroso rules out ECB's role as lender of last resort

European Commission President Jose Manuel Barroso on Wednesday ruled out the possibility of the European Central Bank (ECB) serving as "lender of last resort" for heavily-indebted eurozone countries. "People should not expect the ECB to do what member states should do, and the ECB should not replace the national governments in carrying out the austerity measures and structural reforms," Barroso told a press conference. He made the remarks in response to a question about whether the Commission wants the ECB to become "the lender of last resort" for eurozone member states, as demanded by officials in many eurozone countries. "We can't go against the rule of law and principles which forbid the ECB from provide(ing) financing to national governments," Barroso said at a press conference. "I fully respect the independence of the ECB, which is essential for the stability of the single currency and each member of the euro area," he added. The president said the ECB had done its best to help calm the market panic by intervening in the secondary market, and that he was confident the ECB would keep this policy.