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ECB asset-buying blurs line between fiscal and monetary policy - Weidmann

German Bundesbank President Jens Weidmann listens to a speech during a Bundesbank banking congress in Frankfurt, Germany, July 9, 2015. REUTERS/Ralph Orlowski

LISBON (Reuters) - The European Central Bank's 1.5 trillion-euro (1 trillion pounds) asset-buying programme blurs the line between fiscal and monetary policy, reducing the incentive for governments to keep spending tight, Bundesbank President Jens Weidmann said on Thursday. Weidmann, who also sits on the European Central Bank's rate-setting Governing Council, has been among the ECB's main critics, arguing that policy is already loose enough, leaving the euro area prone to asset bubbles and financial instability. The ECB is buying assets, mostly government bonds on the secondary market, to boost inflation - lowering yields and effectively making it cheaper for governments to borrow. (Reporting by Sergio Goncalves and Shrikesh Laxmidas; Writing by Balazs Koranyi; Editing by Andrew Roche)