The initial German reaction to the rate cut was muted, as we reported on Friday morning. We were particularly surprised by Bild, which appeared to endorse the decision. But the reactions have since become fiercer when it became clear that both Jens Weidmann and Jorg Asmussen had opposed the rate cut – plus four other central bankers. The FT quotes another anonymous central banker as saying that the German opposition could become a problem for the difficult decisions has yet to make. The ECB was losing trust in Germany. The article says there were also signs of a growing anti-Italian sentiment in German policy circles, quoting a vicious attack by Wirtschaftswoche, which says that the eurozone was now run by the Bank of Italy. Hans Werner Sinn is quoted as saying: “Draghi abused the euro system by giving cheap loans to the southern countries, of the kind that they would not get on the capital market.”

Vir: Eurozone blog