Weidmann: Large-scale borrowing at the EU level should remain a one-off crisis measure
Bundesbank President Jens Weidmann has expressed unease about the EU’s extensive joint borrowing to fund the Recovery and Resilience Facility in response to the coronavirus crisis. “This kind of borrowing should remain a one-off crisis measure,” he said, arguing that permanently raising joint debt does not square with the EU’s institutional framework.
Financial Stability Review: German financial system has proven to be stable
In the first half of the year, the coronavirus pandemic led to the most severe economic crisis in decades. The German financial system has, however, proven to be stable during the pandemic, and so far fulfilled its key functions, said Claudia Buch, Vice-President of the Deutsche Bundesbank, at the presentation of the 2020 Financial Stability Review. Ms Buch added that, in the further course of the pandemic, corporate insolvencies are likely to increase, and this requires sufficient preparation.
Jens Weidmann: “The monetary policy stance is appropriate at this time”
Bundesbank President Jens Weidmann sees no reason to move away from the last monetary policy assessment at the moment and cautions against pre-empting decisions that are not yet on the agenda. “The monetary policy stance is appropriate at this time,” he told interviewers from the German “Börsen-Zeitung” newspaper.
Burkhard Balz: Digital euro could have far-reaching consequences for our financial system
Bundesbank Executive Board member Burkhard Balz has pointed out the risks to financial stability given the possible introduction of a digital euro. “The digital euro could have far-reaching consequences for our financial system, notably because it could be a substitute for bank deposits,” Mr Balz said in an interview with the German newspaper “Frankfurter Allgemeine Zeitung”.