MEPs disclose Draghi’s bond-buying plan

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Despite strong German opposition, the ECB could buy government bonds maturing in three years or less. This is what European Central Bank chief Mario Draghi suggested to a closed hearing at the European Parliament on Monday, according to MEPs present.

“I understood the exchange in such a way that in the future there will be again interventions by the ECB.” ALSO “I would see this in such a way that there could be tensions in the ECB Board, that’s why he did not wanted to comment in public.”, said Sven GIEGOLD (Greens/ALE, DE).

Draghi is set to unveil details on the ECB’s bond-buying plan next Thursday. The scheme is aimed at easing borrowing costs for eurozone debt-laden countries. Only hours before the ECB’s meeting, Spain is due to issue 3.5 billion euros worth of two and three-year bonds.

The ECB’s programme would only consider helping those countries who request financial aid and only in exchange for tough reforms.

MEP’s on Monday also voiced concern on whether a European banking union will be feasible. It still remains unclear if the banking union will cover all banks in the eurozone. EU commissioner Michel Barnier is due to publish the EC’s plan on banking supervision on September 12th.

“We will continue to work in the following days on this ambitious proposal, it will tackle all the banks of the Euro zone and of course with the support of the National supervisor”, said Michel Barnier, European Commissioner for Internal market and services.

Ahead of a decisive month for the fate of the euro, rating agency Moody’s warned on Tuesday that the EU’s triple A credit rating could be downgraded.

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