Economy
Saturday, 16 April 2016
On the edge of the IMF meeting to ECB chief Draghi speaks from his currently sharpest critics: German Finance. Even Bundesbank President Weidmann is on site and keeps Schäuble a “keynote”.
There was much to talk about for Wolfgang Schaeuble and Mario Draghi. Several hours spent by the Federal Finance Minister and the President of the ECB on the edge of the IMF spring meeting in a Washington restaurant. While there are always times such dual-control talks the two Duzfreunde with a glass of red wine. But before this meeting in the US capital located some had been building up.
Draghi launched a dialogue to talk about the attacks from Germany. “What’s wrong with you and why you ahead”, the monetary authorities should have asked the Minister of Finance in the face of displeasure about the low interest rate policy of the European Central Bank (ECB). Among the neutrally and negative interest rates suffer not only banks and insurance companies in Germany, but also savers and retirement.
There are mainly Union politicians who make Draghi scapegoat and as violent as ever before the actually independent central bank attack. The fear is great that are out of money investors quickly “Wutsparer” and benefited from the low interest rate policy of the ECB in particular the AFD.
CDU-man Schäuble is one of these public critics, and he had the Euro Fed even directly to the rise of AfD partly responsible. German Finance could have responded at the evening meetings Draghi roughly friendly, he must be able to talk as a politician on the consequences of policy of cheap money. The ECB’s independence he had not even questioned
Schäuble true “any point” Weidmann to
In this sense, Schäuble justified already a few hours earlier -. On the side of Bundesbank -President Jens Weidmann. The criticized the massive purchases of government bonds and that reminds some time that the central bank should have the risks and side effects of its ultra loose monetary policy in mind. But Weidmann it is now felt uncomfortable that now just out of Germany the ECB’s independence is questioned.
Therefore, the Federal Reserve Chairman used the joint appearance with Schäuble in Washington in a keynote address the independence of ECB extensively to defend. This was a “valuable asset” that Germany had fought handle it. And this finally emphasize indeed the Minister of Finance again. He understands the kind packaged criticism Weidmanns well as small sideswipe. According to the “fundamental remarks” says Schäuble unasked, he could support every word and “every comma”
Weidmann throws then pointed a:. “. Since I have no doubt” But obviously he has yet. Anders Weidmann’s keynote address can not be explained. Of course the ECB’s decisions are not sacrosanct and should be discussed, also emphasizes the Federal Banker. Also he sees the concerns of savers and the problems for retirement: “But the Governing Council must base its decisions on the needs of the entire euro area.” Needs of individual countries should not come to the fore, it is not included wishes of individual groups.
election results not
More “ECB debt” on the subject
In Washington Schäuble wants nothing to do which, previously drawn a line from the low interest rate policy of the ECB to the strengthening of the AFD and have virtually given the monetary policy to blame for the success of the right-wing populists. He merely pointed out that a human insecurity varied show in election results by neutral or negative interest rates, Schäuble defended. “This is not the fault of the ECB.” It is a result of the construction of the monetary union. But you should be allowed to point out the consequences for Germany. This should not be confused with criticism of the ECB, or even attacks on their independence.
Even the Bundesbank chief admits the ECB had not sacrosanct and must be able to withstand criticism. But the central bankers should not be oriented because of the potential consequences could have their decisions on the political landscape. “Where that leads out because if you think the time to end?” warns Weidmann and advertises an objectification of the debate: “In Germany, citizens are not only depositors but also taxpayers, workers, and some people even financed his own home with a loan.” Not only for the armed Weidmann is a little out to one side. The economic debate was a bit thin, so criticized some in Washington.
Source: n-tv.de
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