11 June 2013

German Economy Minister and Vice-Chancellor Rösler called to position himself more clearly against OMT scheme

Several FDP politicians have urged party leader Philipp Rösler to position himself more boldly against the ECB's crisis policy. Clear criticism of the ECB's policies has emerged from the left.

Translated from the German

The German Handelsblatt reports that a financial expert of the FDP parliamentary group, Frank Schäffler, has said in an interview that the party leadership was not representing the views of the remaining supporters of the market economy but rather tailoring their position too much to the social democratic mainstream.

 "The market-orientated gene is widespread among the followers of the FDP. Liberals know that prosperity cannot be printed by the ECB", he stated. That the FDP has still lost two thirds of its voters since 2009, he argued, was due to the irresolute positioning of the party leadership.

Schäffler's party colleague, Knopek Lutz, criticised Philipp Rösler even more overtly: "Especially such an unequivocally pro-European party as the FDP must not accept it when European institutions systematically question the contractual basis of the EU. The leadership of the FDP must therefore be much clearer and bolder in saying that the current policy of the ECB goes far beyond the limits of its mandat."

Philipp Rösler has recently stressed the independence of the ECB and warned that crisis countries must not influence the central bank - but he avoided to attack the crisis policy of the Frankfurt monetary authorities directly. He only stated that "to print money instead of taking reforms would not solve the problems" and that there was no alternative to increasing competitiveness.

But far from being united, liberal voices have also backed Wolfgang Schäuble's defence of the ECB's policies. As the Handelsblatt further reported, Michael Theurer, Chairman of the Budgetary Control Committee and Vice Chairman of the FDP in the European Parliament, backed the finance minister's view, saying that "logically national constitutional courts can not rule on European institutions. Just imagine the spiral of problems for the EU if next the French or Italian Constitutional Court judge the actions of the ECB from their point of view."

Much more sharp and less unambiguous criticism than from the FDP was voiced by the vice-chairman of the Left Party in the Bundestag, Sarah Wagenknecht, who said to journalists that Schäuble was subject to a "dangerous error". "The German constitution does not give guarantees for the existence of the euro, but for democracy and the welfare state. The ECB does not stand above the it." She warned about the dangers of one day having to choose between the euro and constitutional law.

© Handelsblatt