Editorial Board
ECB and Germany Should Define the Rules of Their Game: View
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The European Central Bank, with the support of Germany, is putting immense pressure on euro-area governments to do something about their finances. To that end, it would be helpful if central bankers more clearly defined what they want done.
By refusing to intervene as investor jitters send government borrowing rates to euro-era highs, the ECB has become the primary agent of political change in Europe. In recent days, market pressure has pushed Greece, Italy and Spain to install new governments focused on the painful measures needed to stabilize their debts and make their economies more competitive.