It was the first time that an act of crisis resolution in the eurozone did not undershoot expectations. By agreeing an unlimited bond purchasing programme, and by abandoning the privilege of senior creditor status, the European Central Bank has demonstrated that it is the only functional institution left in the European Union. A rescue of the eurozone is inconceivable without the help of the ECB.
This achievement became possible because the majority on the ECB’s governing council outvoted the representative of the Bundesbank. With his No vote, Jens Weidmann has isolated himself among his peers. We no longer have a conflict between the north and the south, but between Germany and the rest.
It should be no cause of glee, let alone joy, because German isolation is about the last thing the eurozone needs. The day after the ECB’s decision, the German media eulogised Mr Weidmann for fighting against the infidels in the ECB. The consensus view among German commentators is that the ECB has lost its independence; that the German taxpayer will foot the bill; and that hyperinflation is around the corner. One commentator was appalled by the fact that Mario Draghi was ready to save the euro at any cost.