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ECB bond buying programme does not go far enough

6 September, 2012 - by Mary Lou McDonald TD

Speaking after the announcement of a new sovereign bond buying programme by the European Central Bank Sinn Féin Vice President Mary Lou McDonald welcomed the announcement but said that the proposals do not go far enough.

Deputy McDonald also expressed concern that the programme will be subject to “conditions that will continue to depress the real economy and block a return to job and GDP growth.”

Deputy McDonald said:

“Once again the ECB has fallen short of the necessary action to stabilise the Euro and assist governments in returning their economies to growth. While I welcome the announcement of the new sovereign bond buying programme I am concerned that it does not go far enough.

“Sinn Féin has been arguing for some time that the ECB should be directly involved in sovereign bond purchases on the primary market. Today’s announcement was for the secondary market only.

“We are also concerned with the strict conditions that will be applied to the bond buying programme will further depress the real economy and block a return to job and GDP growth.

“The policies of austerity are failing to generate growth. Ireland and the Eurozone urgently require investment in job creation. Today’s announcement may provide some relief for the stability of the currency but at the cost of a return to recovery and growth.

“Once again the ECB is being too cautious. It is also following the failed policies of austerity despite the growing body of evidence that these policies are not working.” ENDS

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