Draghi Nagged by Unwelcome Distraction From Euro Area’s East


Mario Draghi is finding the euro area’s eastern flank to be an unwelcome distraction.

The European Central Bank president is likely to find the Governing Council missing both its Latvian and Slovenian representatives this summer, with the former barred because of a bribery investigation and the latter opting to leave his job. The ECB is questioning Latvia’s restrictions on Governor Ilmars Rimsevics at the European Court of Justice.

It’s the latest nuisance from the European Union’s east, where countries such as Poland have long dragged their feet over deeper integration and Bulgaria is reluctant to allow ECB scrutiny of its banks. Latvia and neighboring Estonia have also been at the center of money-laundering scandals this year that have shuttered lenders.

“It’s very inconvenient for Draghi as they have to monitor this,” said Piet Christiansen, an economist at Danske Bank A/S in Copenhagen. “It takes some focus from the more pressing problems.” …

Read more : Bloomberg, 11.04.2018