Germany, the ECB’s largest shareholder, opposes to help for indebted states -Sources
According to the sources, Germany, the biggest shareholder in the European Central Bank, is against providing assistance to troubled governments.
In an impromptu meeting on June 15, ECB officials agreed to buy more debt from countries with high levels of debt in order to close the gap between their borrowing costs and Germany’s as the organisation prepared to raise interest rates.
Joachim Nagel, the president of the Bundesbank, objected to the ECB’s promise to provide further assistance for the region’s problematic south during an emergency meeting last month, causing a breach between the ECB and its biggest shareholder, according to sources who spoke to Reuters.
Nevertheless, three persons who wished to remain anonymous due to the nature of Governing Council meetings said that Nagel argued that the ECB should instead focus on combating increasing inflation.
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