(images Mario Draghi press conference)
The European Central Bank, or ECB, today announced a Quantitative Easing Package, which means buying sovereign bonds, to stave off deflation and boost the Eurozone's weakening economy.
Mario Draghi, ECB President, announced a historic decision to buy a total of 60 billion euros a month, adding the purchase of sovereign bonds to its existing private sector asset purchase programmes. The purchases will start in March 2015 and will be maintained until the end of September 2016. But they could continue until a sustained adjustment in inflation rates to close to 2% over the medium term. These measures, that seek to expand the supply of money to encourage economic growth were welcomed by Pablo Zalba, Vice-Chair of the Economic and Monetary Affairs Committee in the European Parliament. He emphasised that the crisis will only come to an end if structural reforms and fiscal consolidation continue.
Pablo Zalba on
I think these Quantitative Easing measures announced today by the ECB are part of the solution, they are not the solution. We need also to support these measures announced by the ECB with reforms and fiscal policy in Member States.
With markets so expectant of new measures and with the European economy weakening, it's probably a case of better late than never for the Eurozone.
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