The European Central Bank (ECB) is to start buying up sovereign bonds from 9 March. Its president, Mario Draghi, believes that the programme of unprecedented monetary stimulus in the Eurozone will succeed in stemming the threat of deflation in the region. Next week will see an enormous machinery set in motion for the purchase of public debt on a mass scale from the 19 countries in the monetary union. Known as quantitative easing (QE), this has now been renamed by the ECB as the Public Sector Purchase Programme (PSPP) and will consist of bond purchases up to €60bn per month.
Greece continues to be financed with the help of the European Union. Eurozone Ministers of Economy and Finance have approved the new package of economic measures presented to Brussels by Athens. This then paves the way to extend Greece’s bail-out. The spokesman for the European Commission, Margaritis Schinas, said that the proposals are “sufficiently complete” and are a “good start”. The same expression was used by Mario Draghi in a statement, however the ECB president added several ‘buts’. According to Draghi, what counts is the current memorandum.
An agreement on the Greek bailout programme was initially supposed to be reached at the Eurogroup meeting of 11 February. As the finance ministers gathered it became clear that arriving at decisions would not be a matter that would be resolved in a day. Greece and its creditors could not even agree to a common press release