Die Welt: Without Draghi, the Euro would be history

Low interest rates – at what price?

Though bad for lenders and good for borrowers, low interest rates are a financial topic of major concern according to an article published today in the German daily newspaper Die Welt, which  notes that the person responsible for the policy of cheap money is the president of the European Central Bank (ECB), Mario Draghi.

While Mario Draghi has left an unquestionably greater mark on the ECB than his three predecessors, the result of his actions has been mediocre, writes Die Welt, which points out that though he saved the currency union from collapse, he abolished interest rates de facto.

Under the Italian ECB head’s leadership, the currency union became a crisis manager that had to deal with greater demands each time. In the beginning, Draghi pledged continuity, stability and reliability.  If his five-year tenure can be assessed according to these three values, then his record has been mediocre and the following three years will undoubtedly be even more difficult.

Without Draghi, Die Welt points out, the Euro as we know it would be a thing of the past.  But the question is: at what price – and who will ultimately pay it?