Controversy over the ECB role remains at the heart of the Euro crisis

Friday, November 18th 2011 - 21:35 UTC

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Draghi has urged the Euro zone governments to act fast

European Central Bank chief Mario Draghi told Euro zone governments on Friday to act fast to get their rescue fund up and running, expressing exasperation at their lack of progress in response to an escalating debt crisis.

With the ECB under intense pressure to play a greater role in tackling the Euro zone crisis, Draghi said governments had failed to put into practice decisions underpinning the European Financial Stability Facility – the rescue fund which they have promised to give more firepower without yet explaining how.

“Where is the implementation of these long-standing decisions?” Draghi said at a banking conference in Frankfurt. “We should not be waiting any longer.”

While the ECB, with strong German support, is anxious to remain free from political interference and resisting calls from some European governments to take major action in response to the spreading debt crisis, it has made limited bond purchases that have steadied investors' nerves.

Deutsche Bank Chief Executive Josef Ackermann said European states could not rely on the ECB to solve the Euro zone debt crisis. “The ECB primary role should not be to take up these bonds,” he said.

Euro zone governments have set a December deadline to strengthen the EFSF but these efforts have been undermined by delays, surging borrowing costs and scant investor interest.

Draghi fought off heavy political pressure for the ECB to do more in the current debt crisis, saying its overriding task was to safeguard price stability.

Categories: Economy, International.

Tags: ECB, European Financial Stability Facility, Josef Ackermann, Mario Draghi.

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briton
Euro zone governments have set a December deadline to strengthen
they already said this, yesterdaysssss
and will still be saying this tomorrows,sssss
so thats it then, nothing will be done, untill the sound of breaking glass,
alas by then it will be to late,..
Nov 18th, 2011 - 09:56 pm 0
ElaineB
Indeed. Angela Merkel has the unenviable nickname of Frau Ditherer. I understand her position. Germans remember all to well when they lived with a worthless currency. They are reluctant to throw all their money in the pot to bail out the other Eurozone failing economies when they diligently saved and developed a strong and thriving economy.
Nov 19th, 2011 - 09:46 am 0
Yuleno
And in capitalist democracy it's ok for one nation to defend itself in a way that seen as appropriate to it's own conditions.just because capital has a problem in Europe doesn't mean the one solution suits each country the same and these 2 individual are responsible to different masters than capital,it's just that they foolishly believe in the capitalist models.to german people are at least represented by a leader who is not seeking to dominate a process that is proving to become deeper by the day
Nov 19th, 2011 - 07:56 pm 0

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