, Columnist
The ECB Makes Its Move Against Negative Rates
Mario Draghi's parting gift on tiering was really a tacit admission that sub-zero rates aren’t working properly.
A hike by any other name.
Photographer: Andreas Arnold/BloombergThis article is for subscribers only.
Euro zone finance minsters are pushing back against the negative rate regime of the European Central Bank just as Christine Lagarde takes the reins from Mario Draghi.
This is yet another rerun of the battle between the economically strongest (essentially northern) European nations and their weaker partners over who should shoulder the burden for maintaining stability in the euro zone. As my colleague Ferdinando Giugliano contests, it’s pretty rich that the wealthier countries are complaining about the nasty side-effects of sub-zero rates when they could make them unnecessary by turning on the fiscal taps.