"But the causes are far from all eliminated.", continues weidmann.
ECB director jorg asmussen also warns that the problems have not yet been overcome. "The adjustment processes, the elimination of structural and competitive problems will still take years," asmussen told the "stuttgarter nachrichten" (monday). The zeal for reform in the euro zone must therefore not be allowed to wane.
Weidmann said that if crisis moods were to develop now, this could become a danger. "Namely when the politicians want nothing more to do with the crisis and expect the bank of notes to pull the chestnuts out of the fire."
Weidmann again criticized the announcement by the european central bank (ECB) that it would buy unlimited amounts of bonds from crisis states if necessary. He feared "stability policy risks and the danger of mixing monetary and fiscal policy," weidmann said. "The euro system should not comprehensively communitize sovereign solvency risks and move close to monetary sovereign financing."
Asmussen defended the role of the ECB. "We took it over because other institutions were not capable of acting," he told "stuttgarter nachrichten". However, he conceded, "we at the ECB must indeed be careful not to overstretch our mandate. This is sometimes necessary in times of crisis. As we approach normal times, we need to get out of this crisis mode."
Weidmann pointed out that savers were burdened by the ECB’s policy of saving the euro because interest rates on savings deposits were lower than the rate of inflation: "negative real interest rates are the consequences of the expansionary monetary policy in the crisis, which the saver spurs immediately."
"The entanglement with fiscal policy makes it harder for us to focus on our real tasks," weidmann said. In his opinion, the risks of inflation tend to decrease in the short term. But: "if there is now again a discussion about whether we should not allow a little more inflation, I think that is a fire hazard."