"Monetary stability is at massive risk in the medium term," issing told the "frankfurter allgemeine sonntagszeitung". The ECB’s balance sheet was able to accumulate masses of government securities of inferior value. "If the papers have to be written off, it’s the taxpayers who pay for it in the end."
Issing called claims that the european central bank (ECB) would later be able to "easily" recover the liquidity it had issued "frivolous talk". There are effective instruments, but the collection of money is difficult. There has never been a comparable situation, no one knows what so much liquidity can do. With the u.S. Fed and other central banks flooding the markets, issing warned: "there is a global liquidity glut, and sooner or later it will have a dangerous effect." Former ECB council member jurgen stark also renewed his criticism of bond purchases.
The ECB is ready in principle to buy more government bonds from crisis countries like spain and italy in order to print their risk premiums. However, the ECB attached conditions to it: the respective countries had to apply to the EU rescue fund for aid, and the countries then had to accept conditions in return. But new rescue operations by the central bank are also controversial in the ECB’s governing council. Resistance comes mainly from bundesbank president jens weidmann.