Woolnough: Why the ECB is becoming too political

WOOLNOUGH

M&G's Richard Woolnough argues the European Central Bank's independence has been compromised by its vow to "save the euro at all costs".

The ECB is modelled on the idea of an independent central bank, where decisions are made to enforce economic rather than political discipline. Recently however, its role and mandate seem to be changing. This move by the ECB to become more an arm of the state is typified by Mr Weidmann's comments recently. He draws comparisons of the recent potential bond buying announcement, with that of aggressive state financing via the printing of money by non independent central banks. Not only has the ECB agreed to become more like an arm of the state, it is potentially attempting to become the s...