Earlier today, Stark repeated that the ECB will not be the lender of last resort to governments. And he’s probably right.
As long as he’s on the ECB board, they probably won’t. But Herr Stark is set to step down at the end of this year.
It’s a brave new world we are entering. Central bank mandates and charters will likely be stretched beyond recognition if not tossed to the wind.
Once Stark is gone, there is a greater chance of the ECB loosening its Germanic roots, at least temporarily, until the crisis passes.
