Last Wednesday (2-9-11) at a group CFA related dinner event, Marko Papic, a Senior Eurasia Analyst, discussed events surrounding the Euro and the ECB’s (European Central Bank) influence on the Euro countries.
This topic is very interesting as I have long had wonders of the Euro’s continued success. A failed Euro would certainly cause ripples across the globe economically, however, in my opinion, a failed Euro would not cause a catastrophic global meltdown as some have predicted, again, in my opinion, yet it is important to keep a watchful eye on changes.
According to Mr. Papic, due to Germany’s dramatic economic growth and dominance within the Euro countries, German Chancellor Angela Merkel (think Germany’s version of Obama or President) has long wanted a German Chief of the ECB. Currently the chief of the ECB is Jean-Claude Trichet, a Frenchman, who’s post is up for election in October of 2011.
Here is where it gets interesting:
Just two days after Mr. Papic’s talk about the importance of Germany having a chief of ECB representative, Axel Weber the ECB heir apparent (think the US version of Ben Bernanke) suddenly decided to resign, most certainly leaving Merkel (German Chancellor) frustrated.
While much of this may sound like headlines more suited for the Enquirer, the players are of great importance. According to Mr. Papic, the ECB needs to get settled by 2013 or there could be great headwinds facing the collaborative group of suitors for the Euro, possibly leading to a disruption.
Keep an eye across the ponds, musical chairs over there will have an affect here, and be glad other countries have not had sudden departures of important representatives.
Have a Great Day!