SPIEGEL ONLINE INTERNATIONAL: Bundesbank head Axel Weber's resignation has made one thing clear: The debate about the future of the euro has become intense -- and bitter. Indeed, Chancellor Angela Merkel's efforts at mandating strict monetary discipline for the euro zone may ultimately fail. And German euro skeptics may be gaining ground.
The breakfast for conservative ministers prior to Chancellor Angela Merkel's weekly cabinet meeting is considered the most secretive and concentrated gathering in the day-to-day business of political Berlin. There are no leaks, no mobile phones ringing and no one leaves the room.
Last Wednesday, however, the morning discussion was abruptly interrupted. The ministers belonging to Merkel's center-right Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), were just perusing the first items on the agenda when a Chancellery employee told Merkel that she had an urgent call. Jens Weidmann, Merkel's economic advisor, was on the line to tell her that Axel Weber, president of the German Central Bank, the Bundesbank, intended to announce his resignation that day.
When Merkel returned, the cabinet members could tell by the expression on her face that something very unpleasant had happened -- so unpleasant, in fact, that close associates would later call it a "catastrophe." Merkel conferred briefly with Finance Minister Wolfgang Schäuble before calling Weber. It quickly became clear that there was nothing that could be done.
He had given careful thought to his decision, the banker told Merkel. He said that he felt isolated as a result of his strict, anti-inflation policies, and that he was practically alone in his views within the European Central Bank (ECB). Under these circumstances, Weber explained, he could not continue in office, and certainly could not become ECB president. >>> Christian Reiermann and Michael Sauga | Moonday, February 14, 2011
