FRANKFURT — The European Central Bank must employ “exceptional measures” at times to fulfil its mandate of delivering stable prices, ECB President Mario Draghi wrote in an opinion piece on Wednesday aimed at calming German angst about the bank’s policy course.
The ECB is drawing up a new bond-buying plan to lower the borrowing costs facing Spain and Italy, which Draghi is expected to detail after a September 6 policy meeting. Germany’s Bundesbank – highly respected by German voters – opposes the plan.
Draghi wrote his opinion piece in German weekly Die Zeit after Bundesbank chief Jens Weidmann told magazine Der Spiegel the ECB bond-buying plan verged on the taboo for the bank of outright financing of governments.
Financial Post
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