President’s Bundesbank says he is concerned about the excessive expectations that fall on the ECB and the dangerous links are being established between monetary and fiscal policy, ie between central bankers and governments.
“I do not think it is correct that no market access banks to obtain loans [ECB] to finance its own debt securities, which is also without access to the market,” says President the Bundesbank, Jens Weidmann in an interview with Handelsblatt, quoted by Bloomberg, referring to the emergency financing facility (ELA in the English acronym) that has been to ensure liquidity to Greek banks, at a time when the Greek State persists in vertigo bankruptcy.
Asked whether the ECB would be willing to force out of the euro Greece by stopping the funding of its banks, Weidmann replies that “the decision on the future of Greece the monetary union clearly the responsibility of governments. ” “We are not the competent authority to decide the composition of the monetary union or the granting of redemptions”. “We are not all-powerful”, says, asserting itself “concerned about the increasing politicization of central banks, as well as the constantly growing expectations that fall on us.”
“We are risking an overload dangerous on central banks “that – highlights -. have no democratic legitimacy or tools to solve Europe’s problems
In the interview, Weidmann still around to criticize the asset purchase program (” quantitative easing “) released by the ECB (with its negative vote), arguing that central banks are becoming the biggest creditors of governments, strengthening, in this way, the links between monetary and fiscal policy. “This could increase the political pressure on central banks in future monetary policy decisions, especially as a result [of this interconnection] the stimulus reforms will be weakened.”
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