Yesterday in Paris, Axel Weber, chief of the German CB , in a WSJ interview said something like “if the 750 billion in the bailout fund should not be enough, we will fill it up. An attack on the Euro has no chance to succeed.” French business daily La Tribune reported a while ago that Sarkozy is opposed to Weber’s ascent to the ECB helm when Trichet’s term ends next autumn.
Just 4 weeks ago Weber called for the end of the bond buying program – a.k.a money printing – by the ECB. Apparently Mr. Sarkozy can be very convincing. I wonder how Mr. Weber is going to mop up all this liquidity when he will be in charge.
- Weber Says Europe’s Rescue Fund Could Be Increased If Needed (businessweek.com)
- Euro will survive – ECB’s Weber (reuters.com)
- Germany Source: No Franco-German Deal On Trichet’s Successor (forexlive.com)