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Financial Times: Weidmann is winning the debate on policy

Author: Wolfgang Münchau
September 9, 2012


Wolfgang Münchau writes in this Financial Times article that despite isolating himself from his peers in the European Central Bank, Jens Weidmann, president of the Deutsche Bundesbank, is actually winning the debate about future ECB policy.

It was the first time that an act of crisis resolution in the eurozone did not undershoot expectations. By agreeing to an unlimited bond purchasing programme, and by abandoning the privilege of senior creditor status, the European Central Bank has demonstrated that it is the only functional institution left in the EU. A rescue of the eurozone is inconceivable without the help of the ECB.

This achievement became possible because the majority on the ECB's governing council outvoted the representative of the Bundesbank. With his No vote, Jens Weidmann has isolated himself among his peers. We no longer have a conflict between the north and the south, but between Germany and the rest.

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