FRANKFURT, Make Money Blog $ - Chief Economist, European Central Bank (ECB), Juergen Stark, suddenly mengudurkanhimself from his position on Friday (09/09/2011) local time.


Officially, Stark (63) simply states resigned for personal reasons,before his term ends in May 2014.

Observers read that this showed there has been a serious schismin the body of the ECB in a step to save the eurozone.

Later, in order to save the state of being depressed and not able to access debt markets, the ECB buy state bonds, such as Italy andPortugal.

This step is to invite controversy. Some argue, the ECB is not feasible to do so because of damage to central bank independence. Germany, the country of origin Stark, is a party thatstrongly opposes such a move.

Hours after resigning, Stark said it should be carried out drasticreforms in the euro zone to rescue her.

Stark setback news was received negatively by financial market participants. Shares in European and U.S. markets go down. Starkassessed setback will further complicate the settlement ofproblems in the eurozone since the ECB has been split is widening. (AP / AFP / joe)
source: kompas.com
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Posted in: European Central Bank,Eurozone,FRANKFURT,Jürgen Stark