There's an interesting article in FT Deutschland today, highlighting a survey of ECB staff. According to a survey conducted by the ECB's trade union IPSO recently, 55.1% of ECB staff believe that current ECB President Jean-Claude Trichet has overstepped the ECB's mandate with his actions (implicitly referring to the ECB's purchase of government bonds under the so-called Securities Markets Programme). We've questioned the ECB's actions in the past, but have always pointed out that it has been put in a near impossible position by the lack of action on the part of eurozone leaders and the structural flaws in the eurozone set up. Interestingly, it seems that the ECB staff feel the same way, with only 35.6% willing to condemn his actions.
Overall, it might be fair to say that Mario Draghi - Trichet's successor - is about to enter a fairly hostile environement. His early actions will likely set the tone for much of his tenure.
In other ECB related news, Juergen Stark, ECB Governing Board member, who recently announced his resignation for 'personal reasons' (read objections to ECB bond buying programme) gave an interesting speech to the European Parliament yesterday. Not only did he have a lot to say in favour of stronger economic governance (clearly a shot across the bow of those profligate economies which forced the ECB's hand) but also argued vehmently against eurobonds (he is still German after all). Most interestingly though he told the Parliament that he will "most likely" make a full statement when he steps down at the end of the year.
Now that should make for an interesting speech...
Of course Tricheur overstepped his mandate, which is only to control inflation. In the absence of any political capability in Europe, he took over as effective European President, and made decisions which could only be made by a head of state. His aim: not to save Greece, or other PIGIS; but to save his beloved child, the Euro, however much it costs the taxpayer: and to kick the can along the road til the deficits of the French banks are all taken on by the German taxpayer.
ReplyDeleteThe ECB empolyees are after all only ordinary people like the rest of us. Who cares whether they are happy with the mans behaviour the euro must be saved. It's like tieing the passengers to the sinking Titanic to keep it afloat.
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