ECB chief Mario Draghi is apparently trying concerns remove from Germany against the expected program for large-scale purchase of government bonds of euro countries. There will always likely that the European Central Bank President make concessions to the Germans in order to appease the government and the population, reported the “mirror” and the “Frankfurter Allgemeine Sunday newspaper.”
It’ll think about it that the national central banks each bought only the government bonds of their own country. Moreover, should losses that may eventually incur those purchases, not as far distributed normal to the central banks of all countries. Rather, each central bank should be liable for the risks of their country alone – at least for half
In addition, the monetary authorities intend to introduce a cap on purchases according to the magazine.. Each central bank should take only a maximum ratio of 20 or 25 percent of the outstanding debt of a country from the market. Greece should not be allowed to participate in the program because its government bonds did not meet the quality standards for the measure
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Germany would have to failure of Italian government bonds probably will not be liable
That would be the report referred to mean that the Federal Bank and the German taxpayer or for the possible failure of Italian or French government bonds only partially liable should. In federal banking circles, it said, the paper said that excluding the loss-sharing would eliminate only one of many problems: that of the common liability for any loss. But there was more fundamental objections to the purchase of government bonds, namely with regard to necessity, effectiveness and risk.
“If the other central banks want to buy risky securities without Germany liable for it, then they should do that” said CDU Group Vice Michael Fuchs newspaper. It makes sense but the program will not thereby.
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