Weidmann attacks the floor of the ECB “will slow reforms” – The Republic

Weidmann attacks the floor of the ECB "will slow reforms" – The Republic

MILAN – Jens Weidmann challenge Mario Draghi with a frontal attack in the aftermath of the announcement of the new measures of monetary policy of the ECB. For the number one of the Bundesbank quantitative easing from the ECB is likely to hold back reforms especially in Italy and France: “It ‘sure – he says – that the purchase plan goes to reduce the pressure on countries like Italy and France, but it would be dangerous not to continue the reforms already under way. ” In his attack Weidmann minimizes the risk of deflation: “The risk of deflation – claims – a spiral of lower prices and wages, is very weak” because the fall in energy prices pushes in a positive way and “it is a good thing because it brings relief to businesses and consumers. “

Instant replication of the Bank of Italy governor Ignazio Visco:” No, it is not so. ” Purchases of bonds launched with the ECB QE will produce, in fact, “income from monetary operations” that will be turned over to the national central banks and may even help the public budgets. According to banking sources, then, “Germany will gain, producing a quarter of the overall gain.”

The governor of the German Central Bank remains as the only way to criticize openly the maneuver from one million launched by the ECB against the deflationary spiral with the aim of boosting the economy of the Old Continent. For the German chancellor, Angela Merkel, in fact, “the choices of the ECB are very important. I think everything will be put in place will give a boost” to the recovery. On the same wavelength French President Francois Hollande that in this way the ECB “puts the emphasis on growth”, but the plan “should not divert attention from the reforms.”

On the other hand the Qe “might help but it will not be enough to revitalize the European economy and boost growth. We need deep structural reforms that can improve the competitiveness” explains the general director of the IMF, Christine Lagarde. “This know also Dragons” added the German finance minister, Wolfgang Schaeuble.

Arguments:

bce

quantitative easing

austerity

growth

Starring:

Jens Weidmann