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This article was published on 23 January 2015 to 06:36 hours.
The last modified on 23 January 2015 to 06:54 hours.
Continued from Page 1
The announcement of Qe by the President of the European Central Bank, Mario Draghi, was immediately greeted by a full-page headline of the popular German newspaper “Bild”, “What happens now to our money?”.
And from a barrage of reactions between the negative and the horror of economists and bankers, industrialists and politicians. The leader of the German economists anti-ECB, the president of the research institute Ifo Bavarian, Hans-Werner Sinn, said the operation “illegal” and promptly Democrat Congressman Peter Gauweiler, former promoter of the German Constitutional Court case against the UNWTO, the anti-crisis plan of the ECB, has declare that I have ready recourse also against Qe.
The chancellor Angela Merkel, who is aware of the political constraints that are placed by the emergence to the right of his CDU eurosceptics of Alternative fuer Deutschland, he repeated with more force than he had done in recent days, the view expressed by the first president of the Bundesbank, Jens Weidmann, the action of the ECB should not slow structural reforms (which is basically the idea of Dragons), but added the observation, that sounds like a criticism not at all veiled, that “liquidity in the world there is also too much.” Which has the paradoxical result of the defense of the independence of the Central Bank, Michel Sapin, Minister of Finance of France, certainly not a pulpit just innocent about preaching the ECB.
To listen barrage of criticism from German you would not think that one of the key elements of the plan, the sharing of the risk of purchases of securities only at 20%, is inspired directly Weidmann. “There was consensus on this element,” Draghi said, explaining that no one has objected. Another central banker present at the meeting, however, noted that objections to the “nationalization” of the risk, there are plenty, but what about where it was eventually found the consensus was a compromise that, according to this source, was already present in the convictions of Dragons and that was in fact already packaged with a meeting in Berlin last week with Chancellor Merkel and Finance Minister Wolfgang Schaeuble. From German source, it is noted that this has prevented the Qe become a sort of safety net for the debt of the weaker countries or the introduction of eurobonds from the window. Draghi insisted that it is given too much weight to this element, a critical debate in the media and in the markets, but also, indirectly, the German obsession: saving (20%) the principle of sharing, but taking into account the concerns German, they all agreed, is his opinion. Some people think that in his own words has revealed the trick, despite assurances, in case of a default, the consequences would be paid by all. Someone else believes that he has an open compound fracture today by favorable market conditions, but it may open with unpredictable consequences to the next “accident”, or just when you were to see that Q is not working. A compromise, however, that, in the face of strong German pressure, however, has allowed the Dragons to bring home the result he cared more, a broad consensus. The unanimity that the Qe, thus including the purchase of government bonds is a tool that is a legitimate part of the repertoire of monetary policy. Conclusion is not so obvious, since his return, perhaps beyond of the appropriate, was du e precisely to the doubts of the Germans, but not only that the Qe face a full part of the measures allowed in a monetary union which is not even a fiscal union. But above Draghi also reported “a large majority” approval Qe now. On this point, he said, has not even voted, since the positions were clear, a practice for the truth very much in use at the ECB, and that was the norm in less turbulent times pre-crisis and decisions on less controversial. Eventually, the dissenters were the same Weidmann, the former vice president of the Bundesbank and now ECB executive board member, Sabine Lautenschlaeger, then both German advisers, as well as the governors of the Netherlands, Estonia and Luxembourg. For Dragons, all in all, a success, given the fairly harsh tones emerged on the eve and also in a tight confrontation on Wednesday afternoon and evening. How to silence his critics Germans, that is probably an impossible task even for Super-Mario.
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