Volker Wieland points out risks of ECB monetary policy (Tagesthemen, CNBC)

In an interview with CNBC Volker Wieland said the case for more quantitative easing by the European Central Bank (ECB) was being overplayed. In the news program "ARD-Tagesthemen" he pointed out the risks regarding the ECB's monetary policy. There was no incentive for governments in the eurozone to reduce their debt.

The ECB's Governing Council earlier reduced its deposit rate by 10 basis points to minus 0.3 percent. Moreover, the ECB will extend quantitative easing by six months until at least March 2017. Financial markets reacted with skepticism.

Governments in the eurozone should reduce their debt and consolidate, Wieland said in "ARD-Tagesthemen". However, in view of the low cost of financing there was no incentive. Instead, the governments rather expand their debt. In an interview with CNBC, Wieland said he was not surprised at the outcome. The whole case of additional easing was being overplayed. In his opinion, the ECB should rather talk about slowing down the speed of purchase.

Video of ARD-Tagesthemen 03/12/15 (contribution starts at 20.14 min)
Interview with CNBC on 04/12/15: "Case for more ECB easing overplayed: Wieland"
CNBC.com: "ECB vice-president: The markets got it wrong"