ecb chief draghi defends bond purchasing program in german parliament
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

ECB chief Draghi defends bond purchasing program in German parliament

Arab Today, arab today

Arab Today, arab today ECB chief Draghi defends bond purchasing program in German parliament

Berlin - XINHUA

European Central Bank (ECB) President Mario Draghi visited Berlin on Wednesday, defending his unlimited bond purchasing program in German Bundestag, or lower house of the parliament. The ECB's Outright Monetary Transactions (OMT) plan, which was announced last month to purchase unlimited amount of bonds issued by eurozone struggling economies, would neither "compromise ECB's independence" nor create "excessive risks" for taxpayers or lead to inflation, said Draghi. "The fact that governments have to comply with conditionality will actually protect our independence. The ECB will not be forced to step in for a lack of policy implementation," he explained, adding that ECB would decide whether to intervene "based on its own assessment of monetary policy transmission and with the aim of safeguarding price stability." According to the design of OMT, member states who wish their bonds to be purchased by ECB, would have to apply for aid from European rescue funds, and accept strict conditions attached. "Our interventions will take place solely on secondary markets ... They will involve buying government debt from investors, not from governments. All this is fully consistent with the treaty's prohibition on monetary financing," Draghi said. He argued that any "excessive risk" to taxpayers would only materialize if a country were to run "unsound policies". But this will be explicitly prevented by the ESM program. "We have been very clear that each time a program starts being reviewed, we will routinely suspend operations and resume them only if the review has been concluded positively. This will ensure that the ECB intervenes only in countries where the economy and public finances are on a sustainable path," Draghi said. He also defended his anti-crisis measure against accusation that it might lead to inflation. "We have designed our operations so that their effect on monetary conditions will be neutral," he said, "for every euro we inject, we will withdraw a euro." Being considered by the market as two of the stabilizing anchors for the crisis-tortured eurozone together with the ESM, the ECB's bond purchasing plan had faced resistance from Germany, the largest economy in Europe and by far the largest paymaster for bailout funds. German lawmakers and German central bank, the Bundesbank, have argued that the ECB has exceeded its authority and its plan would trigger inflation in the eurozone. The Bundesbank on Monday reiterated its opposition against the plan by accusing ECB of mixing up monetary policy and fiscal policy. "Monetary policy (in ECB's plan) takes on a stabilizing function, which is originally a fiscal policy task," the Bundesbank wrote in a monthly report. In a joint report presented earlier this month, four of German leading economic institutes also warned of inflation risk that might be triggered by the ECB's plan.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ecb chief draghi defends bond purchasing program in german parliament ecb chief draghi defends bond purchasing program in german parliament

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ecb chief draghi defends bond purchasing program in german parliament ecb chief draghi defends bond purchasing program in german parliament

 



GMT 10:06 2012 Saturday ,28 July

Querrey advances at ATP LA Open

GMT 21:15 2017 Thursday ,01 June

Trump condemns deadly Kabul explosion

GMT 02:15 2017 Thursday ,24 August

Is your country on the Qatar free entry list of 80?

GMT 19:48 2016 Monday ,03 October

Controversial boxing champ Tyson Fury retires

GMT 08:20 2015 Tuesday ,08 December

PC market woes show no sign of easing

GMT 17:27 2017 Tuesday ,25 April

20 Yemeni soldiers killed, injured in explosion

GMT 11:52 2017 Saturday ,30 December

OIC condemns Mar Mina Church attack

GMT 00:03 2017 Saturday ,25 March

Arab Meeting to Examine Anti-Corruption Methods

GMT 13:12 2017 Thursday ,20 April

Deputy premier meets Arab League chief

GMT 14:13 2014 Friday ,10 January

Opel Astra GTC

GMT 18:27 2016 Tuesday ,02 August

Turkish Foreign Minister arrives in Islamabad

GMT 11:27 2016 Tuesday ,13 December

Saudi woman arrested for challenging social norms
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday