It may be too late to save Greece from default, but Eurozone doves are excited as the European Central Bank sheds its biggest hawks.Outspoken ECB critic Nouriel Roubini sees a brighter future. He tweeted this morning: “With Weber, Stark, Trichet and Bini Smaghi all soon gone the ECB could take a more pragmatic & flexible approach to the Eurozone crisis”
German central banker Axel Weber resigned this spring and declined to run for ECB president. Juergen Stark resigned this week in opposition to the ECB’s bond buying. Lorenzo Bini Smaghi has opposed Greek restructuring. Chief Jean-Claude Trichet hiked interest rates, which really pissed off Roubini.
Meanwhile the mostly-hawkish Germans are terrified about losing sway over the ECB, according to Reuters:
The resignation of ECB chief economist Juergen Stark, a member of Angela Merkel’s conservatives, is also a major blow to the Chancellor who has been deserted by several top allies and this month faces a vote on expanding the euro zone bailout fund which could even cost her job.
The end of the ECB as we knew it,” a headline in the Financial Times Deutschland stated baldly.
“Now it is over once and for all. The phase in the history of the ECB which was moulded by the Bundesbank,” wrote commentator Wolfgang Proissl.
Other reports this morning say German deputy finance minister Joerg Asmussen is a top candidate to replace Stark as the ECB chief economist. While a German, Asmussen stands in the camp of pro-bailout Angela Merkel.
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