Der Habicht

13 October 2010 By Pierre Briancon

Axel Weber says the European Central Bank s sovereign bondbuying programme hasn t worked and should be stopped. He also wants a speedy exit from other emergency measures. This public dissent will confuse markets about the ECB s policy, and increase upward pressure on the euro.

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Axel Weber, the president of Germany's central bank and a member of the European Central Bank's governing council, said on Oct. 12 that the ECB's programme to stimulate the economy by buying government bonds "should now be phased out permanently", as there is no evidence that they have had any impact on the euro zone's sovereign bond yields.

In a speech to the Foreign Policy Association in New York, Weber acknowledged that the ECB's nonconventional liquidity measures involved risks "both in exiting too early and exiting too late", but, he added, "the latter are greater than the former".

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