Axel Weber, the head of the Bundesbank and ECB council member, said it is too early to say that the European debt crisis is contained as the ECB ramp up its purchases of bonds to lower volatility in markets.

He mentioned that outlook for 2011 remains cautious, revealing that solving debt woes will depend on how did euro area economies learned from the crisis, cutting debt levels and putting stricter penalties for budget violations.

Weber stressed the importance of fiscal policy while said ECB purchases of government bonds causes stability risks.

With regard Germany, he sees positive outlook, despite the upcoming challenges, referring that domestic demand will lead recovery.