ECB tells EU to step up reforms, says bond-buying temporary

PARIS, Sept 5 (Reuters) - The current and incoming head of the European Central Bank demanded on Monday that European governments quickly implement a strengthening of a regional bailout fund and press ahead with wider reforms.

With some euro zone states dragging their heels in approving the reform of the European Financial Stability Facility agreed in July, ECB President Jean-Claude Trichet and Bank of Italy Governor Mario Draghi warned any delay risked worsening the euro zone's debt crisis.

Lawyers Make Matters Worse for the Euro

If politicians have been bad news for the euro then the lawyers are going to be even worse.

At every juncture there appear to be legal blockages to Germany’s participation in the bailouts for the peripheral debtors of the euro zone.

ECB: Financial Stability Outlook "Challenging" On Contagion Risks

FRANKFURT (Dow Jones)--Contagion from the euro zone's debt crisis remains the key risk to financial stability in the single currency bloc, the European Central Bank warned Wednesday, reiterating its opposition to a debt restructuring.

"Despite improving global and euro area economic and financial conditions, the overall outlook for financial stability has remained very challenging in the euro area," the ECB said in its semi-annual Financial Stability Review.