Only the fiercely conservative stewards of the European Central Bank have the firepower to intervene aggressively in the markets with essentially unlimited resources. But the bank itself, and its most important member state, Germany, have steadfastly resisted letting it take up the mantle of lender of last resort.<\/p>\n
European politicians and analysts say that unbending stance now threatens the survival of the euro and the broader integration of Europe itself.
\u201cThere is no solution to the crisis without the E.C.B.,\u201d\u009d said Charles Wyplosz, a professor at the Graduate Institute in Geneva and co-author of a standard textbook on European integration. \u201cThe amounts we are talking about are too big for anybody but the E.C.B.\u201d\u009d<\/p>\n
At issue is whether the bank has the will \u201d\u201d or the legal foundation \u201d\u201d to become a European version of the Federal Reserve in the United States, with a license to print money in whatever quantity it considers necessary to ensure the smooth functioning of markets and, if needed, to essentially bail out countries that are members of the euro zone.<\/p>\n