Many critics, including the president of the Bundesbank, amounted in Germany Sunday after the ECB decision to open the valve even more liquidity in the euro zone by launching a program of asset purchases.
The head of the German central bank, Jens Weidmann, found in the weekly Focus that the European Central Bank (ECB) buying assets “low quality”. In doing so, “the risks of credit issued by private banks will be transferred to the central bank and thus to taxpayers without adequate compensation,” the central banker.
The President of the ECB Mario Draghi said Thursday the purchase of ABS in the fourth quarter 2014, as well as secure from mid-October obligations, and for at least two years.
Meanwhile, Bavarian Finance Minister Markus Söder, also criticized the decision. “We fear more that the ECB will thus become a ‘bad bank’,” he has said in the regional newspaper “Münchner Merkur” to be released Monday. For curator, Autumn “will be hot” and he expects the government of Angela Merkel that it opposes such measures.
The president of the German Savings Banks, Georg Fahrenschon, stressed that the ECB viscieux created a circle with its current monetary policy, based on very low rates. “With low interest rates, it is easier for European countries in crisis to take on new debt, rather than confronting the problems and implement reforms,” he estimated in the regional daily “Magdeburg Volkstimme. “
The next purchase of ABS by the ECB is controversial. These complex financial products were made partly responsible for the 2008 financial crisis Their mechanism is similar to the “subprime” (collateralized mortgage) Americans.
The acquisition of ABS is One measure of the ECB required to loosen credit and thus to support the activity, while the area is mired in low growth and the threat of deflation.
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