Germany apologises for brazen criticism of ECB policies

Author: Justin Low | Category: Central Banks

Bundesbank chief Jens Weidmann made an apology to Mario Draghi after a staunch attack on the September stimulus package

In an interview with Bild after the September decision, Weidmann had said that the ECB was jeaopardising financial stability but had later then told Draghi that he was "unhappy with the editorial placement" of the interview.

Bild sold Draghi as "Count Draghila", sucking dry the bank accounts of German savers.

The full report on this FT piece can be found here (may be gated).

To be fair, Weidmann wasn't alone in openly throwing harsh words at the ECB over the September stimulus package. France, Austria and Netherlands were also doing the same in what was quite an unprecedented show of division among the ECB.

But the apology here at least shows some room for reconciliation and at least could lead to some groundwork to repair the ECB's credibility - which has been thrown into question over the past two months or so.

We can only wait and see how things progress under Lagarde but so far it has all been very hush hush.

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