Austrian: ECB should play 'main role' in fighting crisis

(BRUSSELS) - Austria's chancellor on Thursday called for the European Central Bank to play the "main role" in tackling the eurozone debt crisis, in comments that risked re-opening old wounds over ECB independence.

Speaking to reporters on arrival for a crunch EU summit that has been dubbed the last chance to save the debt-wracked euro, Werner Faymann said the ECB should be given "additional flexibility" in efforts to combat the two-year-old crisis.

He added: "We are convinced that the ECB should play the main role" in supporting the EU's rescue fund designed to prevent large European economies such as Italy and Spain from falling into the euro debt abyss.

The man chairing the key talks in Brussels, Herman Van Rompuy, has proposed giving the EU's future rescue fund -- the European Stability Mechanism (ESM) -- a banking licence to enable it to borrow from the ECB like other banks.

However, this is strictly opposed in Germany, Europe's top economy, which is a passionate supporter of the ECB's independence.

Many analysts say that the only way the crisis can be tackled in a credible fashion is for the ECB to step up its controversial programme of buying the bonds of debt-mired countries to drive down their borrowing costs.

Earlier in the week, ECB chief Mario Draghi appeared to open the door to boosting such intervention, on condition that EU countries agreed to greater fiscal discipline.

However, at a news conference earlier on Thursday, he then seemed to slam that door shut, saying it was up to governments to dig themselves out of their debt hole.

"The ultimate decisions are in the hands of leaders," Draghi said.

The "actual problem" in the current crisis, according to Austria's Faymann, is that "the firewalls are not strong enough."