BERLIN (Reuters) - Europe will not allow its weakest members to collapse under their debt burden, European Central Bank President Jean-Claude Trichet said in an interview with German weekly Welt am Sonntag.
FRANKFURT — The banker now in charge of rescuing the euro wants his top staff to take Sundays off. Mario Draghi, president of the European Central Bank, eschews long meetings and refrains from lecturing his colleagues, senior ECB officials say.
Until Draghi took over a year ago, insiders say, the bank had a workaholic, micro-managed regime. But even as the Italian has proved ready to intervene in the markets and try policies that would have been unthinkable a few years ago, he has brought a freer, more hands-off culture to the bank.
Back in November of last year, when Jeff Frieden and I were putting the finishing touches on Lost Decades, we wrote:
Many countries with foreign debts in their own currency reduce their real debt burden by allowing their currency to drop in value, so that foreigners get repaid in less-valuable currency.
Jean-Claude Trichet, the former president of the European Central Bank, may have played a pivotal role in blocking efforts to ease Greece's debt burden during negotiations over the country's bailout package in 2010, according to a new paper.
Get ready for record low interest rates in Europe as ECB ready to push boundaries of crisis role
A Reuters survey of 73 analysts showed a 60-percent chance the ECB will cut rates by 25 basis points to a record low of 1.0 percent -- a floor it previously reached during the financial crisis in 2009. It cut rates by a similar amount in November.
A conflict that "blew up" within and between the institutions negotiating Greece's 2010 bailout may have played a pivotal role in blocking efforts to ease the country's debt burden, according to a new paper.