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Lack of detail and timeframe in ECB announcement is worrying - Toibín

2 August, 2012

Sinn Féin’s Peadar Toibín TD has said that moves by the ECB bank to ease the Euro crisis would be welcome, but that the bank has to move speedily.
The Meath deputy said Sinn Féin has recommended that the ECB play a lender-of-last-resort role and that the bank's strong balance sheet is needed as a backstop for the Euro currency to alleviate market fears.
However, while Mario Draghi today said he would come up with measures to support the Euro over the coming weeks - the lack of detail is unsettling and the failure to grasp the urgency of the situation, worrying.

Peadar Toibín TD, said:
"The successful re-entry into the bond markets last week by the Irish state can be linked to the announcements made concerning ECB activity and the potential for debt restructuring. Today's ECB governing council meeting was the test of whether Mario Draghi could deliver on this promise to do whatever it takes to save the Euro, despite Bundesbank opposition.

"The news today that the ECB will take ‘non-standard banking policy’ action - or actions that go beyond the remit of price stability, is welcome. However, the lack of detail on what these measures will be and the delay in their coming into play is worrying. The euro currency continues to be speculated against and the absence of a lender of last resort with a strong balance sheet is a source of instability. The ECB stepping in will alleviate market fears.

"The EU and the ECB needs to accept the urgency of this situation. To date we have had a policy of procrastination. If we continue this way, events in Spain, Italy and even here in Ireland, may come to an unwelcome head. Sinn Féin rejects the attempt to hinge all progress on the furthering of fiscal consolidation. The markets have not reacted positively to the imposition of austerity policies on the peripheral states by the EU. It has reacted positively to talk of dealing with the debt burden and the ECB becoming the lender-of-last-resort. This cannot be ignored by policy makers." ENDS

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