European Central Bank President Jean-Claude Trichet will appeal to the European parliament for harsher sanctions against eurozone debtor nations, German weekly magazine Der Spiegel said. The direct appeal to the European parliament underscores Trichet's determination to plead for tougher sanctions even if European governments fail to beef up proposals for containing the euro zone crisis, the magazine said.
"Member states should need to make a payment following the first violation of the criteria, and face a penalty for repeat offences," Trichet told Der Spiegel, adding that there had been too much resistance to sanctions.
Trichet further said the bank's programme of buying government bonds was temporary.
"We will not do this for ever. This measure is, like all our extraordinary measures, temporary," he told Der Spiegel.
Figures released earlier this week, showed the European Central Bank (ECB) bought no government bonds in the previous week.
The ECB itself reluctantly began buying government bonds on the secondary market last May to counter the sovereign debt crisis which began in Greece, spread to Ireland and is now threatening Portugal.
According to a member of the Governing Council who declined to be named, five members of the Council - including Bundesbank chief Axel Weber - had voted against the bond buying programme when it was first proposed, Der Spiegel said.
This flies in the face of the notion that there had been an "overwhelming majority" in favour of bond buying programme when it was first launched.
On Friday Trichet pleaded to extend the European Financial Stability Facility from 250 million euros to 440 million euros, the magazine said.
Euro zone leaders agreed on Saturday to overhaul the single currency area's financial safety net, a move they hope will help draw a line under the sovereign debt crisis.
The ECB would consider making concessions to debtor countries if they implement austerity measures. The interest payments could be reduced, support measures could be extended, and the duration of existing loans could be extended, the magazine said.
The ECB would even support a permanent crisis resolution mechanism with 500 billion euros as its disposal if accompanied with tough sanctions, Spiegel said.
The majority on the ECB's governing council thinks eurozone debtor nations could buy back their own debt using fresh funds, Der Spiegel said, adding that Axel Weber is against such a move, since it could amount to redistribution of funds through the back door.
Trichet justified warning markets about possible rate hikes by telling Spiegel, "Price stability is according to the EU treaty our main priority."
Earlier this month the European Central Bank said it may hike interest rates next month, far earlier than markets expected.