• Germany's news in English
 
jobs_header_v3

Euro debt crisis 'could last a decade'

The Local · 18 Apr 2013, 07:29

Published: 18 Apr 2013 07:29 GMT+02:00

Facebook Twitter Google+ reddit

"Overcoming the crisis and the crisis effects will remain a challenge over the next decade," Weidmann - who is president of Germany's central bank the Bundesbank - told the Wall Street Journal.

His view contrasts with recent comments from European Commission President Jose Manuel Barroso that the worst of Europe's crisis is over.

Weidmann said the European Central Bank could cut interest rates below their current record low rates if necessary, but that doing so may not actually prove very effective.

"We might adjust in response to new information," however, "I don't think that the monetary-policy stance is the key issue," said Weidmann.

The ECB slashed its key interest rate to an historic low of 0.75 percent last July and held it there ever since.

Financial markets have nevertheless speculated on a further cut in order to pull the eurozone economy out of recession.

But ECB officials have consistently argued that additional monetary easing might not actually prove very effective as the low level of interest rates was not feeding through to those economies in the 17-country euro area that needed it most.

"Everyone is asking what more can the central bank do instead of asking what other policy makers can contribute," Weidmann said.

The Bundesbank chief has long expressed concern that central banks are under too much pressure from politicians to spur growth in their economies through ultra-low interest rates and other stimulus.

"A point that I think is important to make - perhaps less for my central bank colleagues than for finance ministers - is that the medication monetary policy makers administer only cures the symptoms and that it comes with side-effects and risks," he argued.

AFP/jlb

The Local (news@thelocal.de)

Facebook Twitter Google+ reddit


Your comments about this article

Today's headlines
Berlin vs Munich: whose newborn polar bear is cuter?
Berlin's (left) and Munich's (right) newborn bears. Photos: Tierpark Berlin / DPA

Both city zoos welcomed baby polar bears into the world in November, with Berlin zoo its releasing first photos on Friday. But which one is more adorable?

Learn how to speak German like a silver screen icon
Dirty Harry. Photo: DPA

We all agree that there is no other option than to learn irregular German verbs by rote. But when you want a bit of downtime, why not learn from your big screen heroes?

Stolen Dachau 'Work will set you free' gate found: police
The entrance to Sachsenhausen concentration camp. Photo: DPA

An iron gate from the former Nazi concentration camp in Germany's Dachau with the slogan "Arbeit macht frei" ("Work will set you free") has been found two years after it was stolen, police said Friday.

Mystery flight path artist draws new message in sky
Photo: DPA

A pilot who likes to draw patterns in the sky using his flight path has returned with his greatest artwork yet.

Berlin 'abusing power' to stop Snowden coming to Germany
Edward Snowden. Photo: DPA

Opposition parties have accused the coalition government of overstepping its authority in its attempt to block American whistleblower Edward Snowden's trip to Germany.

Germany gains record number of Michelin-star restaurants
Head of the Michelin Guide, Michael Ellis (centre) with Michelin-star chefs at a presentation in Berlin. Photo: DPA.

Germany had a slew of newly minted Michelin-star restaurants this year, and its top-rated establishments held onto their prestigious three stars.

At last: Germany passes major disabled rights reform
People in wheelchairs watch as the German parliament deliberates on the new disability rights reform. Photo: DPA.

For years people with disabilities in Germany have called for legislation to provide them with better benefits and opportunities in life and work. On Thursday the German parliament passed such a reform - but is it enough?

How new German rules are holding refugee families apart
Children wait for food in Jarablus, Syria. Photo: DPA

Germany, trying to staunch the flow of Syrian refugees, has placed high hurdles for them to be reunited with their families, creating a Kafkaesque nightmare in the courts.

10 German Christmas cookies you have to bake this winter
Photo: DPA

Fire up your ovens and get ready to bake - here are ten festive German cookies and pastries that'll send your senses into paroxysms of yuletide joy.

5 things we learnt reading Germany's first Charlie Hebdo
Photo: DPA.

The very first German edition of Charlie Hebdo hit the shelves across the country on Thursday. So what can Germans expect if they buy it?

Lifestyle
10 German Christmas cookies you have to bake this winter
Sponsored Article
The key to launching your international career
Lifestyle
Our 10-step guide for doing Christmas just like a German
National
Here's why so many Germans vote for the far-right AfD
National
7 events in Germany that'll make December unforgettable
Lifestyle
7 frosty German sayings to make you a winter wordsmith
National
This is how unequal German society has become
National
Six things you should know about the Lufthansa strike
National
9 ways living in Germany will make you a better person
National
These 10 German Christmas markets cannot be missed
Features
8 German words that unlock amazing secrets in English
Culture
10 German words with simply hilarious literal translations
Lifestyle
7 things Germans do that make foreigners feel awkward
International
Why Donald Trump's grandad was booted out of Germany
National
This is what is really inside your Döner kebab
National
Rejoice! Christmas markets start opening across Germany
Education
These German universities are best at landing you a job
Travel
Why Heidelberg is Germany's most inspiring city
Lifestyle
This soppy German Christmas ad will bring you to tears
National
Here's where Germans speak the best (and worst) English
Culture
10 German books you have to read before you die
Culture
U-Bahn train found filled with autumn foliage in Berlin
Features
Seven German words that unlock amazing secrets about English
Travel
Germany's ten most beautiful towns you've never visited
6,627
jobs available
Toytown Germany
Germany's English-speaking crowd