A Bad Omen for the Euro? ECB Delays Construction of its New Headquarters

Wednesday, June 25, 2008

Is this a bad omen for the future of the Eurozone's artificial currency? According to a report of the Austrian TV station ORF the European Central Bank has delayed the construction of its planned 185 metres high twin leaning towers. ORF said that the ECB surprised with an announcement that said the central bank was not able to find a construction company that could build the towers with a budget of €500 million.
It seems the ECB may become its own victim of the accelerating inflation in Europe. Eurozone consumer prices rose to a record annual rate of 3.7% in May from 3.3% a month earlier. Producer prices are rising much faster. In April producer prices raced along at an annual rate of 6.1% in the Eurozone.
According to the Austrian architect company Coop Himmelblau all bids had been substantially higher than the budget. The city of Frankfurt/Main had permitted the new buildings only last May. According to the original schedule the building should have been finished in 2011. The ECB said it will rethink the bidding process.

PHOTO: A model of the leaning towers that should become the new headquarters of the ECB in Frankfurt/Main. Planning is on hold now. Photo: ECB
This surprising development can be seen as more evidence that prices are rising much faster than official figures show. Looking at my expenses I would put Eurozone inflation at roughly double the official rate of 3.7%. The Euro celebrates its 10th anniversary this year. 


Wikinvest Wire