- Does not see danger to euro stability from Irish financial woes
- Assumes Portugal, Spain will not need external aid
- Top priority now to set up permanent bailout mechanism with involvement of private investors
- Idea of creating jint e-bonds not relevant at moment
- ECB will not precommit on buying sovereign debt, depends on situation
- Plans to hold on to bonds bought, not intended for trading (to trade, you’d need another buyer wouldn’t you?)
- ECB to continue to withdraw non-traditional measures as economic environment allows
- State finances need to be sorted out to exit crisis cycle, every country needs to prove itself
- Sees no economic reason for contagion in Europe, but markets not always rational, have failed to differentiate sovereign risk between countries