Hesitant leader

29 March 2012 By Pierre Briançon

Berlin seems ready to expand Europe’s bailout fund, while the Bundesbank keeps criticising the ECB’s liquidity splurge. Germany is seeking to balance economic pragmatism and monetary intransigence. Yet this need not obstruct the debate about reviving economic growth.

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Euro zone nations are falling far behind the United States and Canada as a fragile recovery takes root in advanced economies, the OECD said on March 29, advising central banks to keep easy money flowing so the rebound does not prove short-lived.
Euro zone finance ministers are preparing to increase the combined lending ceiling of their two bailout funds at a summit on March 30, and further accelerate the payment of capital for the permanent facility to allow it to reach capacity sooner, according to a draft statement from the Eurogroup seen by Reuters.
Germany’s opposition Social Democrats warned Chancellor Angela Merkel’s government on March 29 not to take their support for new euro zone crisis-fighting measures for granted, saying more work was needed to convince lawmakers.
Ewald Nowotny, the head of Austria’s central bank, said in an interview in the newspaper Kurier on March 29 that Europe now needs a “serious growth discussion”.

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