Bundesbank head threatens to resign in fight with ECBAugust 31, 2012 - 13:39 AMT PanARMENIAN.Net - The head of the German central bank or Bundesbank has threatened to resign in the festering fight with the European Central Bank over its anti-crisis measures, the daily Bild reported, according to AFP. The newspaper, quoting financial sources, said Bundesbank chief Jens Weidmann has repeatedly threatened to quit in protest over ECB chief Mario Draghi's plans to restart a contested bond-buying program to help the eurozone's most debt-wracked countries. The German government has pressed Weidmann to remain, however, and the Bundesbank chief -- who like each of the other 16 eurozone central bank chiefs has only one vote at the ECB's monthly policy setting meetings - has agreed to stay on at least for the time being and fight his corner at next week's meeting. For the moment, he believes that is the way to fight for the stability of the euro and the independence of the ECB, the newspaper said. Weidmann argues that the bond-buying program, which has worked in the past at bringing down the borrowing costs of crisis-hit countries, is tantamount to monetary financing, where the central bank prints money to pay off a country's debt. And that is something which is expressly forbidden under the ECB's statutes. He fears the measures will fuel inflation, ease the pressure on over-spending governments to get their finances in order and erode the independence of the ECB. Weidmann's predecessor Axel Weber already quit in protest over the program, as did the ECB's former chief economist Juergen Stark, also a German. Weidmann has never made any secret of his opposition. But Draghi issued a public plea for the German central banker to drop his resistance in a newspaper article earlier this week, saying the program and other special emergency measures were justified by the current exceptional circumstances, AFP reports. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Concept to complete Yerevan Cascade discussed at city hall A conceptual proposal to complete the Cascade complex in downtown Yerevan has been presented by Jean-Michel Wilmotte. Pashinyan visits flood-hit region Armenian Prime Minister Nikol Pashinyan on Saturday, June 8 visited the disaster area in the Lori province. €3.5 mln EU grant to support justice reforms in Armenia The European Union has paid €3.5 mln grant to Armenia within a €11mln program on Support to Justice Reforms. Yerevan reacts to Baku’s proposal to see Minsk Group abolition Alen Simonyan has declared that Armenia is taking steps aimed at concluding a peace treaty with Azerbaijan. |