Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Axel Weber quits race to the ECB

  • 11-02-2011 8:36pm
    #1
    later12
    Closed Accounts Posts: 11,299 ✭✭✭✭


    Anyone who takes an interest in European issues would probably be quite taken aback by confirmation of recent developments this evening in relation to the candidacy of Axel Weber to the head of the European Central Bank.

    http://online.wsj.com/article/BT-CO-20110211-710907.html
    Deutsche Bundesbank President Axel Weber, until recently the most likely man to take over the European Central Bank from Jean-Claude Trichet, is to step down from his duties April 30, the German government said Friday.

    The news effectively rules Weber out of the race to succeed Trichet, leaving German Chancellor Angela Merkel without an obvious candidate for the post.

    With German public confidence in the euro at a low ebb because of the sovereign debt problems of many of its 17 member states, the government had hoped Weber would provide an element of reassurance to the public as the region's governments hammer out a sweeping reform of the way the euro zone is run.

    Why does this matter?

    Well, for one thing, the Germans had hoped (indeed all right thinking PIGS ought to have had hoped) that a strong German figure at the head of the ECB would reassure Germany and German voters of their influence.

    While there is still one German contendor for the post (Klaus Regling, EFSF), he would not be seen to be of the same calibre as Axel Weber nor of Weber's unofficial running mates; not to mention that he is not at the head of any central bank (it matters in Europe, apparently). They now have no obvious alternative. That's an issue.

    Second of all, and most seriously, Weber's resignation from the race hints at a sickness at the core of Europe in relation to decision making on the onward strength of the Eurozone and its policymaking. Speculation has been rife of his disillusion with the Eurozone project and how the ECB is run, particularly with regard to the European version of quantitative easing which as a fan of Friedman economics and a staunch monetarist, Weber is opposed to. And this is only going to add to speculation about the future of European monetary policy and perhaps add flames to the fire over the future of the Eurozone itself.


Advertisement