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The Euro's Keeper

As the central bank of the European monetary union, the ECB determines the EU monetary policy. Its main goal: price stability independent from political influence -- a virtue that has been tested during the 2010 euro crisis and subsequent rescue package.

Bundesbank Official on ECB Cash Injection: 'We Have to Keep a Watchful Eye on the Money'

Bundesbank Official on ECB Cash Injection: 'We Have to Keep a Watchful Eye on the Money'

SPIEGEL ONLINE - March 19, 2012

The euro zone's central banks have flooded the markets with cheap money in a bid to fight the financial crisis. In a SPIEGEL ONLINE interview, Joachim Nagel, a member of the board of Germany's central bank, the Bundesbank, explains why the banks have to be weaned off the overabundant money supply. more...

Euro Crisis Crucible: Rift Grows Between Germany's Bundesbank and ECB

Euro Crisis Crucible: Rift Grows Between Germany's Bundesbank and ECB

SPIEGEL ONLINE - March 06, 2012

There are growing divisions among European Central Bank leadership about how to handle the euro crisis, not to mention between the ECB and the Bundesbank, Germany's central bank. While ECB head Mario Draghi is pleased with his recent decision to flood the markets with cheap money, Bundesbank President Jens Weidmann warns of the dangers. By Sven Böll, Martin Hesse, Christian Reiermann, Michael Sauga and Anne Seith more... Comment ]

The Hundred-Billion-Euro Bomb: Euro-Zone Central Bank System Massively Imbalanced

The Hundred-Billion-Euro Bomb: Euro-Zone Central Bank System Massively Imbalanced

SPIEGEL ONLINE - March 06, 2012

More than a year ago, German economist Hans-Werner Sinn discovered a gigantic risk on the balance sheets of Germany's central bank. Were the euro zone to collapse, Bundesbank losses could be half a trillion euros -- more than one-and-a-half times the size of the country's annual budget. By Stefan Kaiser more...

The World From Berlin: 'The ECB's Policies Are Anything But Harmless'

The World From Berlin: 'The ECB's Policies Are Anything But Harmless'

SPIEGEL ONLINE - March 01, 2012

For the second time in about two months, the European Central Bank injected liquidity worth around half a trillion euros into the Continent's banking sector. Hundreds of financial institutions eagerly took advantage of the low-interest loans, but German commentators warn Thursday that the long-term dangers to the economy may not be worth it. more...

Injecting Cash: Europe's Banks Are Addicted to ECB's Cheap Money

Injecting Cash: Europe's Banks Are Addicted to ECB's Cheap Money

SPIEGEL ONLINE - February 27, 2012

The European Central Bank will give European banks another massive round of loans at bargain-basement rates on Tuesday, with financial institutions expected to borrow up to one trillion euros. The ECB is playing down the risks of providing so much cheap money, but critics say that banks have become too dependent on the flow of easy cash. By Martin Hesse and Anne Seith more... Comment ]

The World from Berlin: 'EU Has Not Yet Faced the Whole Sad Truth About Greece'

The World from Berlin: 'EU Has Not Yet Faced the Whole Sad Truth About Greece'

SPIEGEL ONLINE - February 22, 2012

Will the new Greek bailout be enough to save the country from default? The ratings agency Fitch doesn't think so: It downgraded Athens on Wednesday, saying a bankruptcy was "highly likely." German commentators also feel Greece isn't out of the woods yet. more... Comment ]

The World from Berlin: 'Could the Germans Survive a Crisis like Greece's?'

The World from Berlin: 'Could the Germans Survive a Crisis like Greece's?'

SPIEGEL ONLINE - February 08, 2012

Time is running out for the Greek government, which needs to reach a deal on unpopular austerity measures if it is to secure a second EU/IMF bailout. German commentators argue the country has already suffered enough, saying what are needed now are measures to stimulate growth. more... Comment ]

ESM Plus EFSF Plus IMF: Europe May Be Planning 1.5 Trillion Euro Backstop Fund

ESM Plus EFSF Plus IMF: Europe May Be Planning 1.5 Trillion Euro Backstop Fund

SPIEGEL ONLINE - January 31, 2012

The permanent euro backstop fund ESM is due to replace the European Financial Stability Facility this year. But both 500 billion-euro funds could be merged and added to a third from the International Monetary Fund to create a super debt firewall, according to media reports from Davos. more...

The World from Berlin: 'There Is No European Emergency Plan'

The World from Berlin: 'There Is No European Emergency Plan'

SPIEGEL ONLINE - January 27, 2012

Greece is struggling to reach an agreement on debt relief with its private-sector creditors. But even if it ultimately does, the country may need vastly more funding than has been envisioned so far. German commentators on Friday say it's time for a bit of honesty from Europe's leaders. more...

Slow Progress: Greece Struggles to Make Necessary Reforms

Slow Progress: Greece Struggles to Make Necessary Reforms

SPIEGEL ONLINE - January 17, 2012

The troika of the EU, the ECB and the IMF is in Athens this week to negotiate the next tranche of funds for Greece. But the Greek government is making little headway with the necessary reforms. The slow progress is jeopardizing the second bailout for the country. By Julia Amalia Heyer more... Comment ]