“ECB is ready for Proposed referendum on United Kingdom membership of the European Union”: central bank governor warns of financial quake – n-tv.de NEWS

 Economy
 

 Sunday, June 12, 2016

 
 
 

 
 If the British for leaving the EU, it is turbulent for Economy and Financial Markets, predicts France’s central bank chief de Galhau. Someone has to take control. Especially if it is the Bank of England alone not make it.
 

 
 

A British withdrawal from the EU would provoke major economic risks in Europe, according to France’s Central Bank President François Villeroy de Galhau. If the referendum on June 23, a majority of people in the UK vote in favor, this is likely to have significant consequences, the Paris central bankers told “Welt am Sonntag”.

“If it should unfortunately come to a Proposed referendum on United Kingdom membership of the European Union , this will provide short-term instability in the financial markets. ” Then the question will ask how financial transactions are to run further in the internal market, de Galhau told researchers. “And of course he would have consequences for the financial center London to be.”

Britain is not a member of the euro zone, a departure from the EU would have the view of many economists have negative consequences for the growth and highly networked European trading and the movement of capital.

Among the biggest losers of a Proposed referendum on United Kingdom membership of the European Union banks and finance houses will count. London is next to New York the largest financial center in the world. The British capital is not only the world leader in derivatives and foreign exchange trading, but also Europe’s top location for hedge funds and private equity firms. Conversely, this means that the UK supports its economic power than any other industrial nation on the financial sector.

With eight percent of the UK financial sector has a disproportionate share of total value added, which he also contributes disproportionately to tax revenue. Is there for a Proposed referendum on United Kingdom membership of the European Union issues, the Bank of England (BoE) would primarily demanded de Galhau said. If necessary, the European Central Bank (ECB) stand ready to act.

The ECB is due to their monetary policy under increasing critical observation. Even large commercial banks expressed skepticism last on the effectiveness of its strategy. “After seven years of increasingly aggressive policy actions it is clear that they risked the long-term stability of the euro area if they continue on a broad quantitative easing and negative interest rates is” read about at Deutsche Bank analysts.

the capital market expert of Baader Bank Robert Halver, the ECB’s strategy provides critical. “Even this new monetary policy coup is not the trend of business investment in the euro area overall,” he says with a view of the corporate bonds.

In the interests of economic growth and inflation, the monetary authorities had pressed the key interest rate in the euro area to zero and bond purchases decided. Recently, the program was expanded to include securities of private companies. Critics say the ECB soft thus on its monetary policy mandate, especially as the strategy to date does not work out. Inflation has not been tightened.

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De Galhau took ECB chief Mario Draghi in protection: “Germany is the only country in the world that seriously believes that the current monetary policy of the ECB is determined by the fact that their president is an Italian.” Also the allegation that the ECB could become a player in the European industrial policy because certain companies benefited from the purchase of their bonds, he refused. Non countries interests, but the welfare of 340 million citizens in the euro zone “is decisive for the ECB’s decisions. The monetary policy was no” southern European fad “.

De Gelhau asserted that there are clear limits to the ECB. This applies for “how negative” are likely to be interest. but that is true of the idea of ​​the helicopter money. “the subject is not in question,” he said in an interview. the European Central Bank should but probably better explain its policy.

a lot of explanation needed, it should also be in action in the event of a Proposed referendum on United Kingdom membership of the European Union give.

  Source: n-tv.de
 

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