– European Central Bank President Jean-Claude Trichet reiterated that the bank would not accept Greek government bonds as collateral, in the event of a default.

In an interview to the Financial Times Deutschland on Monday, the central bank chief said the responsibility for actions such as debt rollover or partial debt buyback, which could result in a default, lies with the governments.

“If a country defaults, we can no longer accept as normal eligible collateral defaulted bonds issued by the government of that country,” Trichet said, according to a transcript of the interview published by the central bank. “Because, in the eyes of the Governing Council, this would impair our ability to be an anchor of confidence and stability.”

Trichet said the governments would then have to step in themselves to put things right. Reiterating the bank’s strong warning against a selective default, he said the governments would have to take care that the Eurosystem is presented collateral that it could accept.

Germany has long been insisting on voluntary involvement of private creditors in the next Greek rescue, thus relieving taxpayers in other countries. The ECB is against private sector involvement.

“All over the world, the best private sector involvement is foreign direct investments, privatization and going back as soon as possible to spontaneous market financing,” Trichet said.

Trichet’s comments come days ahead of a summit called in Brussels to deal with the financial stability of the euro area and the future financing of the Greek program. European Council president Herman Van Rompuy has convened a meeting of the Eurozone Heads of State or Government in Brussels on Thursday.

Asked about the crisis management efforts of the governments, the ECB head pointed out that speaking with one voice in a period of crisis is of essence. There is an absolute need to improve “verbal discipline”, he said. Trichet also dismissed the criticism that German Chancellor Angela Merkel has acted too slowly, saying such a discussion is completely misplaced in the current situation.

The July 11 meeting of Eurozone finance ministers failed to make any headway in evolving a new rescue package for Greece. However, they agreed to adopt new measures to strengthen euro area’s resistance to contagion risk from debt problems in Greece.

Eurogroup’s new measures included enhancing the flexibility and the scope of the European Financial Stability Facility, lengthening the maturities of the loans and lowering the interest rates, including through a collateral arrangement where appropriate.

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