Frankfurt's key role in eurozone crisis

Frankfurt's role in European business
Frankfurt's role in European business

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Frankfurt's role in European business 03:35

Story highlights

  • Frankfurt is taking steps to increase its prominence in Europe and globally
  • Two key banks are located in Frankfurt -- the European Central Bank and Bundesbank
  • Hubertus Vaeth of Frankfurt Main Finance applauds the competition between London
As German Chancellor Angela Merkel attempts to lead the eurozone out of its crisis, the country's financial capital is also attempting to stamp its authority on the bloc -- and the world.
Hubertus Vaeth, managing director of Frankfurt Main Finance -- the body which calls itself the voice of the financial center -- says Germany's fifth biggest city is playing a vital role for Europe.
Vaeth points to the two key banks that call Frankfurt home -- the European Central Bank and Germany's own Bundesbank -- as examples of why the city is a leader in the financial field.
The banks' role in providing financing for the markets is key, particularly given the crisis, Vaeth says. The European Central Bank, for example, has actively purchased the sovereign bonds of weak eurozone countries, which keeps their funding costs down and has assisted them in weathering the crisis.
"The ECB is a lifeline for Greece, it is a lifeline for French banks, not to mention Spanish banks," Vaeth notes.
Vaeth sees Frankfurt's competition with London as healthy -- but says Germany can rightly claim to be a leader in such areas. "There are clear areas where we believe we are ahead and we will strive, and do what we can do to keep that," he says.