Why Weidmann had to defend Draghi?

Little more than a week back, German Bundesbank chief, who is well known harsh critique of European Central Bank’s ultra-loose monetary policy had to come out in defense of the bank and its governor. Mood is that sour in Germany regarding the loose monetary policy, moreover it’s failure so far to boost inflation.

Mr. Weidmann, defended the bank then saying, “It’s not unusual for politicians to have opinions on monetary policy, but we are independent…….The ECB has to deliver on its price stability mandate and thus an expansionary monetary policy stance is appropriate at this juncture regardless of different views about specific measures.”

But that hasn’t stopped the German politicians attacking on the bank and Draghi.

German finance minister Wolfgang Schäuble, credited the central bank for the rise of right wing populists across Euro Zone.

Deputy Head of the Christian Democratic Union’s (CDU), Hans-Peter Friedrich commented that Mario Draghi’s policies at the central bank has led to the credibility loss of the ECB and he should be replaced with a German when his term ends.

Similar comments were there from another member of Bundestag, “We can’t afford another Draghi”, and so he needs to be replaced by a German specialist.

Draghi’s term will end on 2019, but the policies that has been launched will go beyond his term, for few more years.

Criticism had boiled to such levels that Weidmann had to come out and defend the bank’s policies. Well this is practically the answer of the question we asked, but the real question is –

Why Germans are so irritated with ECB?

Well, the poll shows, Germans, and their stringent policies are most hated in Europe, since the world war II and this clearly not the kind of gratitude they should be getting, especially after paying billions of Dollars during Euro Zone debt crisis to support its partners.

While Germans have tightened their purses at home to keep fiscal balance in check, despite taking up millions of refugees, there are members like Greece, Italy, Spain, France, who are still enjoying higher deficits than prescribed.

In addition to all that, discontent is growing at home, where savers are hardly getting back any return to park money at bank. Domestic insurance companies are suffering too, especially at a time when Germany hardly needs such accommodation.

Europe is risking to reach a point, when talks will be not Grexit but German exit.