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Wolfgang Proissl calls on Draghi and Weidman to repeat a Trichet-Weber type confrontation

Huh?

Proissl calls on Weidmann and Draghi to avoid a remake of the Weber-Trichet-confrontation

Commenting in Financial Times Deutschland Wolfgang Proissl calls upon Jens Weidmann and Mario Draghi to work on avoiding another damaging confrontation as their predecessors Axel Weber and Jean-Claude Trichet had had. Proissl argues that the initially good relations between the presidents of the Bundesbank and the ECB risk turning sour because of a series of policy decisions the ECB has recently taken against the Weidmann's will. Among them are the second surprise interest rate cut in December, the extremely generous conditions of the 3yLTRO's, the imposition of a senior creditor status of the eurosystem for its Greek bonds and the attempts to earmark future profits from Greek bonds for governments so they can pass the money on to Greece. Weidmann has started to come out publicly against those decisions thus risking to put the Bundesbank back into the dissident role unable to form coalitions as was the case under Weber. Proissl calls on both central bankers to work out a mature relationship because working against each other damages the euro and the prospect for both to be successful on their respective jobs.  

Ah, okay.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Thu Feb 23rd, 2012 at 04:22:00 AM EST
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