|Is Germany bluffing with Weidmann resignation?|
A third German super-banker is to quit the Euro-system, after it became clear that Jens Weidmann - the President of Bundesbank is considering a resignation. Rumors distributed by Bild newspaper pointed that Weidmann tries this way to protest against Mario Draghi's plans to accelerate the money print. The ECB Chairman wants to intervene on bond markets in an effort to help Spain and Italy fight the debt crisis.
Up to now 2 other German key-factors has already quitted the ECB. First Axel Weber surprisingly resigned, after being even planned to become a chairman of ECB. Suddenly he decided to make a career in a private bank in Switzerland. Months after that another German financier - Jurgen Stark again suddenly resigned and the Euro immediately sank.
Both Weber and Stark resigned explaining this with their disagreement with ECB policy that started buying bonds on secondary markets.
After these 2 resignations, now is possible the threat of a new resignation to be used by Germany in an effort to oppose Draghi in his de facto QE plans. He has already received support from all other countries except Germany. A third resignation may destabilize the Euro as it will look as Germany is preparing an exit from Euro zone and a resurrection of the Deutsche Mark.
It is not clear if such a bluff can work, but it is clear the at the moment Germany is too distanced from the Euro. Germany has no any important post in Euro-zone at the time it is the main fulcrum of the Euro zone. Even the position of a Eurogroup President vacated by Jean-Claude Junker is not to go to Germany, although German finance minister was a favorite for it.
So Germans are in strong position for bluffing, if they
really plan to keep the Euro. If not, Weidmann will really resign in next weeks
and this may become the trigger that will start the disintegration of the
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