European leaders now need to take decisive action to resolve the interminable eurozone crisis in the wake of totally inadequate response by the ECB following today’s governing council meeting, according to Fianna Fáil Finance Spokesperson Michael McGrath.
Deputy McGrath said, “Once again, the ECB has flattered to deceive and did not take the decisive action that is needed to address the ongoing eurozone crisis and ultimately to save the euro. At the very least, I expected the ECB President Mario Draghi to announce that the bank had resumed its bond buying programme as a short term intervention in an effort to bring down Spanish and Italian bond yields.
“The ECB’s vague statement that it may resume its bond buying programme over the weeks ahead will not be adequate to calm the markets and bring much needed stability to the single currency. The onus now falls on European leaders, including Taoiseach Enda Kenny, to provide the leadership that European citizens are crying out for.
“In my view, what is required is for the ESM to be given a banking licence so that it can borrow from the ECB and lend on to national governments. The penny will have to drop eventually that this is the price for saving the euro.
“We had many fine words from European leaders following the summit at the end of June about breaking the link between banking debt and sovereign balance, and introducing European-wide growth measures, but we have had a precious little action since.
“Following today’s deeply disappointing ECB meeting, there is little doubt but that the euro faces a very uncertain future. For once and for all, European leaders need to demonstrate the vision and leadership that has been patently absent until now.”