Germany and the ECB: 'Either Way, We're Trapped'
Berlin appears to be losing influence at the European Central Bank. Leading economist Hans-Werner Sinn, 63, believes that Germany has been 'pushed to the margins' at the institution and that its hardline positions on monetary policy are a thing of the past.
SPIEGEL: Last week the Germans lost the important post of chief economist at the European Central Bank. Does that mean that German hopes for an ECB focused primarily on monetary stability are in vain?
SPIEGEL: What is your general opinion of the ECB leadership under new president Mario Draghi?
Sinn : As far as personnel goes, it is fully justifiable. Belgian Peter Praet is very well-suited as chief economist and German Jörg Asmussen is a good diplomat for the preparation of the ECB's European Union activities.
SPIEGEL: Bundesbank President Jens Weidmann is considered within the ECB to be the last monetary policy hardliner. Can he count on support from Asmussen?
SPIEGEL: Political pressure on the ECB has been growing to purchase large amounts of bonds from the countries in financial crisis. When will Draghi give in?
Sinn : Instead of giving in, Draghi will likely increase pressure on the international community to purchase government securities through the Luxembourg-based rescue fund, the European Stability Mechanism (ESM). That is indeed not as bad as having the ECB make the purchases, but still bad enough, because Germany will become a creditor to the southern countries this way too. Either way, we're trapped.
Interview conducted by Anne Seith
© SPIEGEL ONLINE 2012
All Rights Reserved
Reproduction only allowed with the permission of SPIEGELnet GmbH
Click on the links below for more information about DER SPIEGEL's history, how to subscribe or purchase the latest issue of the German-language edition in print or digital form or how to obtain rights to reprint SPIEGEL articles.
- Frequently Asked Questions: Everything You Need to Know about DER SPIEGEL
- Six Decades of Quality Journalism: The History of DER SPIEGEL
- A New Home in HafenCity: SPIEGEL's New Hamburg HQ
- Reprints: How To License SPIEGEL Articles