BERLIN, Jan. 25 (Reuters) – President Bundesbank Jens Weidmann expressed doubts about the effectiveness of the asset purchase program announced Thursday by the European Central Bank (ECB) to stimulate economic activity in Europe. In an interview with Welt am Sonntag, which Jens Weidamnn on the Board of Governors of the ECB said he had voted against the program. He believes that the weak growth in the European Union is first linked to the high level of debt and the lack of competitiveness of some member countries. “It is up to governments to correct this,” he said. “It is difficult to estimate the effects this could have but they probably will be less than those known in the United States,” he said referring to the measures taken by the Federal Reserve after the financial crisis of 2008. “The level of interest rates was much higher in the United States where it started. In addition, US companies frequently use markets for financing and procurement of the central bank have made a more direct impact at home and in an economy (more largely) financed by the banks. “ Jens Weidmann had already expressed skepticism Saturday in the daily newspaper of wide circulation Bild, arguing that the program would reduce the pressure weighing on France and Italy to conduct reforms. According to him, the program of the ECB, rated” instrument of abnormal monetary policy, “not a” turning point “but it nevertheless remains “a serious decision.” decision of the European Central Bank has, in his eyes, “the disadvantages and risks” to the single currency. ” Inflation rates are, of course, very low at the moment but this downward trend is related to the low oil prices, “he says. “Many signs that these extremely low inflation rates are only temporary.” More …
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