ECB

Experts have long been gravely concerned about the negative side effects that could result from the eurozone’s prolonged ultra-easy credit. However, reversing the monetary policies of the European Central Bank has proven economically and politically risky. The coronavirus crisis has made the challenge even harder.

Bank regulators are forced to close their eyes again to vulnerabilities that made the 2008 banking industry meltdown possible. They need to ensure that banks continue supporting the real economy during the pandemic. For instance, capital requirements are being softened and regulatory relief given so banks can lend as much as possible ...

Once a staunch defender of financial responsibility in the eurozone, Germany has thrown its support behind the European Commission’s ill-conceived, unwarranted and politicized spending scheme to aid the eurozone’s economy.

Germany’s Federal Constitutional Court in Karlsruhe made history on May 5, 2020. The justices found that the European Central Bank could have acted outside its remit by purchasing government debt. Accordingly, the court suspended the Bundesbank’s participation in the ECB’s program.