Tensions have escalated recently between the European Central Bank and the authorities responsible for monetary policy in Germany, due to the European Bank’s program to buy government bonds in order to support the economies of the euro area.
In a report published by the German website Gold Seiten, the writer Manfred Geburg said that the issue of buying German government bonds did not receive the attention it deserved in the beginning, and the matter was left entirely to the European Central Bank, while German politicians focused their attention on the epidemiological situation in light of The spread of the new Corona virus.
Geborg asked about the implications of the European Central Bank’s intervention in German monetary policy, at a time when the German Parliament is indulging in following the epidemic situation or focusing on its internal affairs, as the current European policy is to redistribute wealth among the rich countries in the eurozone, such as Germany, And troubled countries like Italy, Spain and even France, according to his vision.
Pros and concerns
The German economy witnessed positive developments that surprised many experts, as data published a week ago showed that German industrial production developed in June by 11.1% compared to the previous month, an increase in demand for capital goods by 18.3%, and an increase in German exports by 22%. .
Some of these positive mutations can be explained according to the principle formulated by the American economist Joseph Schumpeter, which is known as "creative demolition." For example, digitalization has bankrupted many industries, while other industries flourished.
But the prosperity of some sectors in Germany collides with concerns about the impact of European monetary policies, as the writer confirms that Germans are concerned about the impact of the European Bank program on the future of the auto industry.
The development of this industry is subject to the influence of the lobbies that have been pressing the federal government for decades, and calls by some politicians to focus on the electric car industry, in addition to monetary policies that focus on implementing the European Central Bank’s options, especially the bond-buying program.
These factors negatively affect the investment climate, as companies are forced to deal with constant fluctuations in stock prices, precious metals prices and cash reserves.