The president of the European Central Bank, Mario Draghi, is set to
disappoint hopes of a “shock and awe” solution for the eurozone crisis
when he unveils plans this week to help the region's strugglers.
Mr Draghi – who ditched a visit to the Jackson Hole symposium in Wyoming last week – faces a frantic race to win the agreement of the ECB's governing council for bond-buying plans amid German opposition before Thursday's critical meeting.
Bundesbank president and ECB committee member Jens Weidmann has reportedly been on the brink of resignation over the move, on the grounds that it breaches the central bank's mandate against financing government debts. His predecessor Axel Weber and German ECB member Juergen Stark both quit last year over last summer's emergency bond-buying programme.
Richard Barwell, an economist at the Royal Bank of Scotland, said: “We don't think it is too great a step into grassy knoll territory to conclude that a Draghi no-show at Jackson Hole likely reflects the fact that discussions within the senior echelons of the ECB are still going on over the design of the new bond buying programme, and a final sign-off is still some way off.”
Read more: http://www.independent.co.uk/news/business/news/central-bank-still-split-over-response-to-eurozone-crisis-8100506.html
Mr Draghi – who ditched a visit to the Jackson Hole symposium in Wyoming last week – faces a frantic race to win the agreement of the ECB's governing council for bond-buying plans amid German opposition before Thursday's critical meeting.
Bundesbank president and ECB committee member Jens Weidmann has reportedly been on the brink of resignation over the move, on the grounds that it breaches the central bank's mandate against financing government debts. His predecessor Axel Weber and German ECB member Juergen Stark both quit last year over last summer's emergency bond-buying programme.
Richard Barwell, an economist at the Royal Bank of Scotland, said: “We don't think it is too great a step into grassy knoll territory to conclude that a Draghi no-show at Jackson Hole likely reflects the fact that discussions within the senior echelons of the ECB are still going on over the design of the new bond buying programme, and a final sign-off is still some way off.”
Read more: http://www.independent.co.uk/news/business/news/central-bank-still-split-over-response-to-eurozone-crisis-8100506.html
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