ECB firefight leaves it exposed to Greek shock

As eurozone politicians scrambled to bring Greek public finances back under control during the spring of 2011, the question of how much the European Central Bank would lose if they fail to avert a default has taken on greater importance.

On the 6 June 2011 Open Europe published a briefing ( A house built on sand. The ECB and the hidden cost of saving the euro ) cataloguing how the eurozone crisis could drive the European Central Bank into insolvency, with taxpayers likely to pick up a big chunk of the bill.

ESO: Background information: ECB’s political tensions flare over Greece http://www.europeansources.info/record/ecbs-political-tensions-flare-over-greece-berlin-stands-firm-on-bail-outs/

Open Europe: Press Release, 6.6.11: €444bn exposure to weak eurozone economies risks bankrupting the European Central Bank http://www.openeurope.org.uk/media-centre/pressrelease.aspx?pressreleaseid=168

Open Europe: A house built on sand. The ECB and the hidden cost of saving the euro http://www.openeurope.org.uk/research/ecbandtheeuro.pdf

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