Commenting on the ECB announcements today following the Governing Council
meeting, UK Liberal Democrat MEP Sharon Bowles, Chair of the European Parliament’s Economic and Monetary Affairs Committee welcomed the reconfirmation that the ECB would do ‘whatever it takes’ to preserve the Euro as a stable currency. She said:
“I do not think the remarks made last week in London by chance, but Mario Draghi has made it quite clear that the ECB is not taking unilateral action, and that is as it should be.
“As ever with European and Euro matters we are looking at combinations to provide solutions. The ECB will look at a combination of unconventional measures, including open market operations of sufficient size, but they will do this in combination with the EFSF/ESM in order to bring in conditionality.
“These combinations of measures are also backstopped by the political commitment that continues to be shown for reforming economic governance and putting in place a road map for greater fiscal integration. Markets should not underestimate the steps already taken: recently speaking in the US Congress there was amazement and respect when I explained that Eurozone governments had signed up to having their budgets approved by the EU before they went to national Parliaments. And more discipline is yet to come.
“However it takes time for these measures to prove themselves, so the ECB is right to keep up its insistence on conditionality and not be seen as a soft option no matter how strong the demands of the markets which have their eye on today more than the long term.
“On 3rd September my committee will be debating progress on this and moves towards a banking union with Mario Draghi, EU commissioners and other top officials.”