Bank

THE BANK

The Birth of Europe's Central Bank and the Rebirth of Europe's Power

Matt Marshall

At the end of the American century, and as the vision of a Pacific century blurs and fades, the creation of the European Central Bank heralds Europe's renaissance as a global economic superpower. The ECB, possessing a greater degree of independence and wider powers than any previous central bank, governs a currency that circulates among 290 million Europeans, and oversees an economic bloc matched only by the United States in size and might.

A team of ECB economists, driven by the vision of a highly integrated, more powerful Europe, aims to steer Europe toward a new era of prosperity and economic growth in the twenty-first century. As founding fathers of the Euroland economy, they have already ensured a "safe-haven" factor: a unique stability based on sound international relations and stable financial policy

Yet the ECB was born with worrying birthmarks. In May 1998, European leaders fought bitterly over the appointment of the bank's first president, Wim Duisenberg. Then, in the first months of its life in 1999, the euro was weakened by differences in economic performance and interest rates between the United States and the euro-zone, and by the political and economic problems in Europe's engine-room, Germany, culminating in the ousting of finance minister Oskar Lafontaine.National interests and rivalries still hamper unified decision-making. Germany has pushed through the Bundesbank blueprint as a model for the new Europe, creating hesitancy and jealousy in France, a country with a strong tradition of proud, national independence. In 'The Bank', the author argues forcefully and convincingly that Europe's full potential as a world power can and will be realized through the German-led vision of a strong and united Europe.

'The Bank' is not just a gripping account of the intrigues and fights that accompanied the creation of the bank. It provides wider context and analysis, with detailed portraits of the key players involved, explaining and examining fully the crucial impact of the bank on Europe's place in the world, and the impact of the bank's creation on national financial centres such as the City of London.

About the Author

Matt Marshall was Bonn correspondent for the Wall Street Journal Europe until the creation of the European Central Bank in May 1998. Reporting extensively on the Bundesbank and on European financial affairs, he found himself in a position to gain a unique insight into European economic and monetary union. This prompted his decision to research and write 'The Bank'.

A contributor to several US and international publications - including the Washington Post and Newsweek - Matt Marshall was born in California in 1966 and obtained a degree at Georgetown University's School of Foreign Service. He now resides in Bonn.

The Power of 'THE BANK'

Perhaps it was no coincidence that the week in which 'The Bank' was published saw the euro fall to its lowest ever point. Newspapers have been quick to seize on its claim that the ECB's president, Wim Duisenberg, told a private meeting that he thought a two-year delay in launching the euro was "a wise idea." The book has provided fuel to a new wave of scepticism about whether the euro can ever successfully overcome what have been called the "structural inefficiencies in the European economy".