In an interview on radio this morning, ECB’s member Hansonn gave an interesting insight on the possible decision process for the ECB future non-standard plan.
Throughout the interview he clearly reiterated that a final decision had not been made and suggested that an internal discussion would have to take place.
He went on to suggest that the final decision on future sovereign bond purchases can be taken even without the Buba’s approval.
It was made clear that the decision would be made by a simple majority and Germany can be outvoted on the Governing Council.
Stated that the program will target short-dated bonds.
In yesterday’s ECB press conference Draghi highlighted that Germany was skeptical on further bond purchases.
The negotiation process will clearly be tough, however, the General Council will try to find an agreement with the Buba.
No matter what, the market is dictating that a decisive ECB policy action is strongly needed. The market is not content with the “hurry up and wait approach.”
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