Germany’s Rachette says it trusts the ECB to continue to curb inflation


Frankfurt — Armin Laschet, a conservative candidate to bid to replace German Chancellor Angela Merkel in this month’s elections, has the European Central Bank (ECB) stabilize prices as inflation hits savers. He said he was confident that he would achieve it.

“It’s alarming to me that small savings, pensions, life insurance and construction loan contracts lose value,” Rachette reportedly told the weekly Welt am Sonntag (WamS) newspaper.

“I’m confident that the ECB will fulfill its core mission of financial stability in particular … but this also means that debt burdens will become an even bigger problem for the state if interest rates rise again,” he said on Saturday. Said in the edition of.

Rachette’s remarks, a week before the September 26 general election, contrast with comments by leading experts in Friedrich Merz’s fiscal and economic policy, which blamed the ECB’s loose monetary policy this week.

The ECB announced this month that it would take the first small step towards unwinding the emergency aid that underpinned the eurozone economy during the coronavirus pandemic and cut emergency bond purchases next quarter.

This year, the ECB expects inflation of 2.2%, above the target of 2%, before falling to 1.7% in 2022 and 1.5% in 2023.

In the latest German election polls provided by Ipsos, conservative CDU / CSU blocks accounted for 21% and the Social Democratic Party (SPD) accounted for 27%, putting pressure on Rachette to fill the gap.

In an attack on his main enemy, the Social Democratic Party’s candidate for prime minister and finance minister Olaf Scholz, Rachette intensified his criticism of money laundering investigations, including attacks on the Scholz ministry.

Earlier this month, German prosecutors raided the financial intelligence unit, a financial ministry, to spotlight Germany’s failure to tackle financial crime.

Immediately after the attack, Scholz, who also serves as deputy prime minister, expressed dissatisfaction with how the prosecutor handled the investigation.

“When the Deputy Prime Minister questions the prosecutor’s independence following the assault on his ministry, it breaks the political taboo,” Rachette told WamS.

Reuters

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