Mario Draghi: ECB chief wants to face criticism in parliament – SPIEGEL ONLINE

The European Central Bank President, Mario Draghi wants, imagine the Bundestag questions to its low interest rate policy. He would accept an invitation and looked forward Draghi said the “picture”. “A polite and constructive debate is quite welcome and helps us even to explain our policy.”

In the Bundestag Draghi will speak at a joint meeting of the Euro, financial and budget committees. SPD parliamentary leader Axel Schäfer had said on Tuesday they aspire a rapid appointment with the ECB chief on.

Draghi raised now again shows the independence of the ECB. “The ECB obeys the laws, not the politicians.” One of his predecessors had once said: “.. It is normal that politicians comment what we do but it would be unnatural that we heard it,”

German savers to change investment behavior

with regard to claims arising from the CDU and CSU, the next ECB president must be a German, Draghi said, even if a non-Italians now in office would be, he or she would “same course follow as we”. Critics in Germany complain that the ECB chief to pursue the policy of low interest mainly for the over-indebted countries of southern Europe.

Given the extremely low interest rates admonished Draghi, German savers to changes in investment behavior. They would have it “and how high investment decisions in their own hands, their income, even in times of low interest” with her. Alternatives to Passbook would bring “good income”, Draghi, who once worked for the US investment bank Goldman Sachs said. In addition, the same low inflation from the negative effects of low interest rates for savers.

worried about Europe

In the interview Draghi warned of the economic consequences of a withdrawal of Britain from the European Union. “I can not and will not believe that the British vote for an exit,” the ECB chief. The British have to decide on 23 June in a referendum whether they want to remain or emerge in the EU, the output of which is according to polls open. “Together we are stronger, but if they do, they must be clear. You lose all the benefits of the internal market”, Draghi said

he was doing on the development of the European Union, however, very concerned.. “We are experiencing various crises that are all connected to each other and mutually reinforcing,” Draghi said. “To resist any nationalism and isolationism is all the more important. However, both are on the rise. This is my big concern.” From Chancellor Angela Merkel he would like “to continue fighting for Europe.”

As banks work

Where can you get central banks all the money?

For the billions that the European Central Bank (ECB) and the US Federal reserve Bank (Fed) set the banks available in the course of the financial crisis, the central banks do not have the printing presses fire up and print bills. The amounts are only credited to the accounts of commercial banks, which are conducted at the central banks. Against securities as collateral, the ECB or Fed borrows money. After a certain period, the banks pay the sum plus interest back.

Can they go bankrupt?

Technically no. The ECB has the euro zone’s monopoly over the central bank and can independently decide when she brings as much money in circulation.

Why churn as much money in the markets?

in general, borrow money institutions on the money market with one another or with the ECB or Fed of money and pay interest – such as a bank customer with a bank for a loan gets and this erodes. For commercial banks, it is important that they have excess money (liquidity), for example for the extension of loans to businesses and consumers. Because of the turbulence in financial markets and any yet unknown risks at individual homes, banks are, however, became suspicious and not in the usual dimensions willing mutually borrow money. In such a case, the central banks can provide a cash infusion to prevent a bottleneck money (credit crunch). The primary objective of central banks are stable prices. The ECB is the EU Treaty but also responsible for the stability of the financial system.