Budget surveillance by an independent institution

In his speech on Europe at the cep in Freiburg, Bundesbank President Jens Weidmann presented "Perspectives for the Euro area and Europe".

Not the EU Commission, but an "independent institution" should be responsible in future for the surveillance of national budgets in the EU. Bundesbank President Weidmann demanded this in Freiburg. According to Weidmann, the EU Commission is in a conflict of interests and is thus not in a position to achieve consistent compliance with the rules that have been adopted. "An institution with a clear mandate to guarantee sustainable public finances would not be in conflict with having to achieve other policy goals at the same time". In addition, he called for the EU's Stability and Growth Pact to be simplified. It is important "that the rules are observed and lead to a rapid reduction of the high debt rates," Weidmann explained.

In the discussion on the banking union and European deposit insurance, Weidmann warned against not sharing risks that have arisen in national responsibility. "Before the establishment of a deposit guarantee system, sovereign risks in bank balance sheets as well as non-performing loans must be sustainably reduced. And for the future, we must prevent that new risks are built up again," said Weidmann, who also referred to the competition with China and the discussion in Germany on the extent to which foreign takeovers should be regulated more strictly. "In particular, takeovers by Chinese investors are viewed with a certain degree of unease because there are fears of a state-orchestrated transfer of know-how and technology to China," said Weidmann, who in this context pointed out that the stock of German investments in China is still sixteen times higher than vice versa. "This should dampen concerns about a so-called wave of takeovers by Chinese investors a little. I think we should proceed with a sense of proportion and beware of investment protectionism.”

Weidmann had previously praised the work of the cep by saying : "The cep succeeds in constructively and critically scrutinising the institutions and processes in Europe on the basis of an undoubtedly pro-European position and the principles of Ordnungspolitik. I can identify well with this approach. Because it is not enough for Europe to be close to one's heart. Only a Europe that works is attractive to its citizens in the long term. That is why it is important to me that basic principles of Ordnungspolitik, such as the principle of liability or the primacy of monetary policy, are taken into account".

In the discussion that followed the presentation, the ECB's monetary policy and related risks and target balances played a major role.