Weber strongly supports Euro

The former head of the German Bundesbank Axel Weber strongly criticised the recent policy of the European Central Bank while he again praised the Euro.

Speaking at the Centre for European Policy (cep) in Freiburg he said: “The implementation of the Euro has been the right decision and is irreversible.” The Euro did not cause the troubles on the financial markets. Therefore one does not need to be concerned about its future. The strong support in the Euro zone shows the trust for the European currency among Member States. According to the latest opinion poll, Eurobarometer, published by the European Commission, 68 percent hold up to the Euro. According to Mr. Weber, who is now in charge of the Swiss bank UBS, the ECB needs to correct its wrong policy to guarantee the future for the Euro. In front of 250 interested participants Weber said: “The ECB is part of the problem and not part of the solution” for the Euro zone. He criticised, in particular, the asset purchase programme of the ECB as well as its policy of negative interest rates on deposits. With such a policy prices are distorted and the stability of financial markets put in danger. According to Mr. Weber, this kind of distribution is not democratically legitimized and while debtors would benefit from it, assurances, pension funds and elder people would suffer.