GERMANY: German Chancellor Angela Merkel warns against interfering with European Central Bank

German Chancellor Angela Merkel warned in an interview on Friday (January 19) against exerting political influence on the European Central Bank, saying that would destroy confidence in the euro currency. In clear criticism of French politicians German Chancellor Angela Merkel on Friday (January 19) warned against the exertion of political influence on the European Central Bank (ECB). In recent months French politicians have accused the ECB in of being too narrowly focused on inflation at the expense of growth and jobs. Merkel said putting political pressure on the ECB would destroy confidence in the euro currency. French politicians have blamed the euro, which is hovering just below 30 United States dollars, for weakening the French economy by making exports less competitive. "I believe the strong euro is an expression of the economic strength of the European Union, or at least the euro zone, and I believe we must ensure it stays that way," Merkel told Reuters. "We cannot allow there to be political influence on the ECB. That would destroy confidence in the euro," she added. France faces presidential elections in April and May and candidates Segolene Royal and Nicolas Sarkozy have both attacked the ECB, with Royal saying she would like to "rebalance" the status of the Frankfurt-based central bank. Italian Prime Minister Romano Prodi has said it would be preferable for the ECB to stop raising interest rates. Merkel also pointed out the importance of the European Union's constitution. "We cannot function as an European Union of the 27 member states - for example, we can't accept a new member, and accession talks are being held with Croatia -- according to the present legal situation." Germany holds the rotating six-month presidency of the EU. Asked whether the Iraq war was the biggest foreign policy mistake by Britain and the United States as far as she could remember, Merkel said "the Iraq war happened and now there is only one single task: we must avoid another split of Europe in the run-of similar decisions that are reached." "We must ensure that Iraq can develop towards stability. That's necessary and that's why Great Britain and Germany and the entire European Union are so interested in solving the conflicts in the region, including the Middle East conflict." "There is no alternative to work hard politically in order to ensure a good future for Iraq," Merkel said during a joint interview with Reuters, BBC, Austrian television ORF, Dutch Nova TV, Czech and Polish television.

ITN Source | January 20, 2007

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