France, Germany throw spanner in Draghi's works

Frankfurt

EUROPEAN Central Bank president Mario Draghi's new campaign to bolster inflation is running into opposition from Germany and France, the euro-area's linchpin economies. Bank of France governor Christian Noyer has joined Bundesbank president Jens Weidmann in fighting Mr Draghi's plan to start buying asset-backed securities before the end of the year, according to two euro-area officials.

While a majority of ECB policymakers backed the purchases and Mr Noyer and Mr Weidmann differed in their dissents, the split at the heart of European policymaking may fan worries among investors that Mr Draghi is unable to deliver a more full-throated response to deteriorating inflation and a stagnant economy.