Saturday, September 10, 2011

Eurozone thrown into fresh turmoil as Germany's top financial official quits the European Central Bank board - 10th Sept 2011

The future of the eurozone was thrown into new confusion last night after the sudden resignation of Germany’s top financial official from the executive board of the Frankfurt based European Central Bank.

The decision by Jurgen Stark to quit comes in the wake of the Frankfurt based European bank’s decision to restart its programme of buying the sovereign bonds issued by Greece, Italy and the other struggling euroland nations.

Stark is known to be an opponent of the bond buying effort fearing that it undermine the credibility of the European Central Bank and could knock down the value of the euro on the foreign exchange markets and lead to future inflation.

The German official is known to be a monetary hawk and clearly opposes the efforts to prop up the single currency at Germany’s expense.

His departure for what were described as ‘personal reasons’ could not come at a worse time for the ailing euro area and sparked a sell off the single currency against the dollar. Read More