As the Trichet era draws to a close (his term ends next year), the once-presumptive heir to the throne, Germany’s Axel Weber, seems to be trying to make amends with Europe to keep his name in the running to replace the present ECB chief.
Weber nearly snuffed his chances to take the ECB helm when he publicly opposed the ECB’s buying of bonds of trouble European states like Greece and Ireland during the first round of the sovereign debt crisis this spring.
Weber’s tone has shifted dramatically in recent days, going so far as saying this week that Europe essentially would write a blank check in order to preserve the euro. If not for pan-European ambitions, it is inconceivable to imagine a Bundesbanker taking such a stance…
What are we to make of the kinder and gentler Weber? Ya gotta do what ya gotta do to gain power, I guess.
The softer tone from the last ECB hardliner is a macro negative for the euro going forward. Investors thought they were buying deutsche marks when they bought into the euro. Looks like they may end up with drachmas…
