It's hard to understand why Merkel is not supporting Weber, given that the Euro is basically the Deutsche Mark and that the only sound economy in the Eurozone is Germany's. Merkel is destroying Germany's credit worthiness and the Eurozone currency for no obvious reason — except maybe the fear that sovereign defaults might hurt Germany's export, which would not be the case in any way, quite the opposite.
Feb. 12 (Bloomberg) -- Bundesbank President Axel Weber said a lack of “acceptance” among euro-area leaders for his views on monetary policy caused him to give up on becoming the next chief of the European Central Bank, Der Spiegel reported.Hat Tip to blbl for sending me the link to the report.
Weber, who resigned yesterday, said his decision not to aim to replace Jean-Claude Trichet as ECB president started forming last May, fueled by misgivings from “several governments” over his opposition to the ECB’s program of buying government bonds.
“The president is in an exceptional position,” Weber said in an interview with the German magazine published today. “But if he represents a minority opinion on important matters, then the credibility of his office suffers.” Bundesbank spokesman Benedikt Fehr confirmed Weber’s remarks by telephone.
The loss of the front-runner for the ECB’s top job leaves European leaders balancing whether to reward policy experience or protect national interest in picking Europe’s main monetary official. Weber said “it’s not so important” what nationality the next ECB chief has, though he called for Trichet’s successor to be “credible” and embody a “stability culture.”
The departing Bundesbank chief hailed Jens Weidmann, German Chancellor Angela Merkel’s top economic adviser and a former student of Weber’s, as an “absolute professional.” Weidmann is a leading candidate to replace Weber at the helm of the Frankfurt-based German central bank, Bild newspaper reported Feb. 9, citing unnamed government and central bank officials.
Weber said his “principal concerns” about the ECB’s bond- buying program haven’t abated, though the volume of funds the bank is lending to governments is “still controllable.” Weber said the ECB won’t let up in its fight against inflation even after he leaves the Bundesbank on April 30.