(
Xinhua)
09:28, August 03, 2012
BRUSSELS, Aug. 2 (Xinhua) -- After pledging to do "whatever it takes" to save the euro last week, Mario Draghi's failure on Thursday to announce immediate measures to bring down rising borrowing costs of peripheral eurozone nations has disappointed many and put Spain in a curious position.
The European Central Bank (ECB) chief had promised in late July in London that he would do everything to save the common currency shared by 17 nations, raising hopes the ECB would intervene directly on government bond markets.
He reiterated Thursday the ECB was ready to act -- only not now. Any new ECB action was conditional on eurozone governments using the existing bailout funds first, Draghi said.
But where does this leave Spain, which has just secured a 100-billion-euro (about 123 billion U.S. dollars) credit line for its banking sector?
ECB ACTION WITH STRINGS ATTACHED
Draghi announced the ECB can make outright purchases in open market operations "of a size adequate to reach its objectives." He added he would detail "over the coming weeks" ECB plans to help struggling economies, repeatedly indicating that monetary policy without government action "was not enough."
"The adherence of governments to their commitments and the fulfilment by the EFSF/ESM of their role are necessary conditions," he said.
This means if Spain was looking for an ECB intervention, it would have to formally apply to the eurozone's bailout funds and agree to attached conditions -- including possible austerity and structural reform -- before receiving help.
"What we can take away from today is that the ECB will act, but not on its own," Stephanie Hare, senior Western Europe analyst at Oxford Analytica, told Xinhua.
More special coverages
【1】 【2】 【3】 Email|
Print|
Comments(Editor:朱蕤、姚春)
Increases the bookmark
twitterfacebookSina MicroblogdiggGoogleDeliciousbuzzfriendfeedLinkedindiigoredditstumbleuponQzoneQQ MicroblogRelated Reading
Spain sees rise in inflation rateThousands demonstrate in Spain against pay cuts, tax hikesGerman lawmakers back Spanish bank aid Spain needs to take hard decisions to regain growth: ministerNew austerity measures protested in SpainThe brave only, Shearing of the Beasts festival held in SpainEurozone ready to offer Spain 30 billion euros by end of JulyHot NewsRussia, China change world politics: Syrian officialChina opposes criticism in Japan defense paperWhat are real challenges for China?Thai ship held in S China portBlast hits building in Sichuan, 11 injuredCity vows to stop dumping of human wasteChinese investors become Inter's second largest shareholderGov't backs New Zealand wine in China, U.S., northern Europe
本站仅提供存储服务,所有内容均由用户发布,如发现有害或侵权内容,请
点击举报。