German Central Bank Still Wary of Bond Purchase Proposal

Despite skepticism from economists and colleagues Merkel remains open to the plan.

FRANKFURT, Germany — Germany's central bank, the Bundesbank, has again stressed its skepticism toward proposed purchases government bonds by the European Central Bank, despite signs Chancellor Angela Merkel is open to the ECB's plans.

The German national central bank said in its monthly report Monday that it continues to "critically assess" such purchases and that they would carry "substantial risks."