According to a report in today’s Frankurter Allegemeine Sonntagszeitung citing unnamed sources close to the discussion
- In proposed ECB QE plans central banks will be liable for at least half of any losses that may arise from buying bonds issued by their own country
- German taxpayers would then only partly be liable for risks from other countries
- but preventing participation in losses from other countries would only deal with one problem among many
All part of Draghi’s attempt to appease Germany on QE plans along with the meeting he had with Merkel and Schauble which Eamonn reported yesterday but not necessarily convincing everyone it would seem
Draghi – look into my eyes, and repeat after me…
