Draghi Prepares Markets for Possibility of “Exceptional Measures”
Once again, rumors are flying concerning the euro, and what could be done to save it. Mario Draghi wrote an English-language opinion piece published earlier in Die Zeit, a German newspaper. The piece takes a look at the future of the euro, and lays out what Draghi considers “exceptional measures”, as well as calling for a fundamental change in the makeup of the eurozone.
Many euro watchers have been hoping for ECB intervention, including the possibility of buying bonds from embattled countries, or even issuing joint eurobonds. However, many of the measures that the ECB is considering taking are not being agreed to by Germany. Draghi’s piece in Die Zeit is meant to help encourage Germans to see the benefit in a tighter union for the eurozone.
Draghi calls for a tighter political and economic union — a ”United States of Europe” setup — in order to prevent further problems from taking place. He insists that more oversight for national budgets, and better regulations for banks, will benefit all eurozone countries, and emphasizes that positives for Germany.
It’s an interesting piece, but it hasn’t helped the euro much. The 17-nation currency remains down against most other majors, but most trading is rangebound today anyway.
At 14:06 GMT EUR/USD is down to 1.2543 from the open at 1.2565. EUR/GBP is down to 0.7920 from the open at 0.7941. EUR/JPY is down to 98.6330 from the open at 98.6480.
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Earlier News About the Euro:
- Euro Sees Gains, But Upside is Likely Limited (2012-08-28)
- Euro Drops Following Antonis Samaras Meeting with Angela Merkel (2012-08-24)
- Euro Higher Even with Continued Economic Contraction in the Eurozone (2012-08-23)
- ECB Ready to Start Bond Buying? Traders Hope So -- Euro Jumps (2012-08-22)
- Euro Looking for Direction; Headlines Likely to Dominate this Week (2012-08-20)