• 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