On September 14, the Council hosted a global conference call with David Marsh, co-chairman of the Official Monetary and Financial Institutions Forum (OMFIF), to discuss the current state of the Euro, options for the European Central Bank, and the fate of the Eurozone.
Last week, Europe’s debt crisis reached a new level of urgency. First, a German court ruled that while Germany can participate in the European Financial Stability Fund, it cannot participate in any permanent institutions to address the current debt crisis. That effectively rules out the creation of a “Eurobond,” one key mechanism to address Europe’s deep debt troubles. Second, a German member of the European Central Bank–Jurgen Stark–resigned over that institution’s decision to buy the bonds of struggling peripheral states. While Mr. Stark has been replaced by Jörg Asmussen, the damage to market confidence has been done.
Through all this, the Greek economy has continued to weaken, and some German politicians have openly speculated about Greece’s future inside the Eurozone. Investors are growing increasingly concerned about the exposure of major European banks to Greek and other weak peripheral country debt. To help make sense of these developments and provide insight into German political development, we are pleased to host David Marsh for a discussion on these issues.
David Marsh is co-chairman of OMFIF, Senior Advisor to London-based asset management company Soditic CBIP LLP, and chairman of the advisory board of independent investment bank London & Oxford Capital Markets. He is also chairman of management consultancy SCCO International. Previously, he worked for City merchant bank Robert Fleming, corporate finance boutique Hawkpoint, and German management consultancy Droege. He worked for the Financial Times between 1978 and 1995, including in France and Germany, becoming European editor.
Marsh has written four books: Germany – Rich, Bothered and Divided (1989); The Bundesbank – The Bank that Rules Europe (1992); Germany and Europe – The Crisis of Unity (1994); The Euro – The Politics of the New Global Currency (2009 – re-released in 2011 as The Battle for the New Global Currency – please see http://www.londonandoxford.com/The_Euro/The_Euro.htm. He is a frequent media commentator in Europe and the US.
Conference Call Featuring
Official Monetary and Financial Institutions Forum (OMFIF)
Director, Global Business and Economics