ECB Transmission Protection Mechanism - challenge to get it past the lawyers
For European Central Bank officials devising a crisis tool that will be credible enough to keep the euro together, the biggest challenge may be to get it past the lawyers.
The challenge is to ensure any plan conforms to the ECB’s mandate of delivering price stability and doesn’t directly finance governments.
That means a decision, on when and under what circumstances it can buy bonds, needs to be matched by safeguards and conditions countries must fulfill in exchange.
Bloomberg 20 July 2022
Member states should stop deferring deeply political issues around sovereign debt to the central bank
It is pushing the central bank into murky political territory, risking its credibility and may result in another lost decade marked by under-investment, stagnation and growing economic divergence between member states.
Philippa Sigl-GlöcknerFT 20 July 2022
https://www.ft.com/content/1a6db30a-18d1-49bb-bd21-ab839b219f39
Italiens kris kommer i ett plågsamt ögonblick för euroområdet
Ambrose Evans-Pritchard Telegraph 19 juli 2022
https://englundmacro.blogspot.com/2022/07/italiens-kris-kommer-i-ett-plagsamt.html
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