The president of Germany's central bank, Jens Weidmann, is arm wrestling with Chancellor Angela Merkel. He has threatened to resign if Draghi launches a new plan for the European Central Bank (ECB) to buy sovereign debt from Spain and Italy.
The game is extremely dangerous and shows that tensions around the euro have finally reached Germany in full and could hurt the nation's political scene and economy. Weidman's gesture is not unique. His predecessor in his role, Axel Weber, resigned from his position for the same reasons in February 2011. The ECB's chief economist Jürgen Stark followed his example. In any case, besides the political maelstrom affecting Germany, Merkel has lost the opportunity to get a German into Mario Draghi's leadership position at the ECB.
Draghi was faithful to the Bundesbank for some time, but bared his teeth this summer. He thinks that the euro zone situation is exceptional and deserving of exceptional measures, because the important goal is to save the euro. Angela Merkel holds the most power, but has to face continual attacks that weaken her position, mostly from within her own party, her political allies and other European leaders.
Germany will hold elections in 2013, and the results of smaller regional elections held earlier this year led to defeats for German conservatives. This latest struggle between Merkel and Weidmann does nothing more than increase doubts to the already shaky situation in the euro zone and forces Merkel to explain to the German people why she is withdrawing her support of Weidmann while at the same time it's important that she explains to other European leaders how to find a way out for the euro. Merkel should also prioritize the general interest above those of her party.
