Hollande during his speech this morning, during which he announced that the ECB will decide Thursday to QE. Photo AP / Philippe Wojazer
French President Hollande seems today to have talked during a New Year speech to turn, by announcing that the European Central Bank’s decision Thursday to quantitative easing , buying up government bonds. The ECB itself does not comment, a spokesman for Hollande now says afterwards that the president “just talked about the implications of the possible scenarios,” said Reuters.
Hollande told a group of sick people in Paris on how he thinks the French economy to grow faster. According include Reuters said Hollande including the following:
“And finally, the European Central Bank on Thursday, making the decision to buy government bonds. Which will provide significant liquidity to the European economy, and that will have a positive effect on growth. “
Whether Hollande relies on inside information or just newspapers read well is not known. There is at least several days openly speculated about what the ECB Governing Thursday will decide. During several interviews hinted ECB Executive Board on the rigorous decision to move to QE: the large-scale purchase of government bonds of euro countries to fight deflation with the so created money
Members of the ECB. -bestuur of countries including Germany and the Netherlands, however, oppose QE. They are afraid that the purchases of government bonds takes away the pressure on governments to implement reforms. They also fear that gets so risky debt on the balance sheet of the ECB and so the problem of everyone.
According to several newspapers, the ECB’s board would now work on a compromise, in which national banks are responsible for the purchase of government bonds of their own state. According to Der Spiegel ECB president Mario Draghi would these plans have among others presented to the German government. That would be remarkable: the ECB operates in principle independent of the governments in the eurozone.
The Dutch bank president Klaas Knot has anyway been extremely positive in the German newspaper about the plans. However, he denied that such plans already ready-ready on the shelf for Thursday
Read explanation of QE in NRC Handelsblad. The European printing press turns on (€) and read at NRC Q: Four possible bombs under the fair in 2015
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