One of the French officials running for the position of new head of the ECB, Mr Benoit Coeure, now a member of the executive board of the European Central Bank, said that markets are sending a message that is “quite alarming” and is of course data that we should be watching. This piece is sourced from an article in the Financial Times attributed to Claire Jones.
The next leader of the ECB expects challenges and economic weakness.
Mr Coeure said that the cooperation that was seen among major powers like the EU, the US and China in 2008 would be difficult now, when these three leaders injected liquidity into the system to protect it from a global economic collapse. The two people being considered for the top job at the ECB are Mr Coeure and Banque de France governor Francois Villeroy de Gala who is often mentioned by Mr Draghi. The concern is that the ECB head, whomever is selected, will face a new set of challenges that are daunting.
According to Mr Coeure, the ECB officials have learned that the economic and monetary union is far more fragile than initially thought. Finally, along with the ideas about the ECB and monetary policy, the potential new head of the bank was clear about the world fragmenting and breaking apart on all levels.