THE CENTRAL BANK Governor Patrick Honohan has welcomed a move by the European Central Bank to prepare a bond buying programme, saying that it was an important step for Ireland and the rest of the Eurozone.
Honohan told RTÉ News that comments made by the ECB President Mario Draghi yesterday were “complex” but would ultimately lead to a beneficial situation once the markets had had a chance to react.
On Thursday, Dhragi said the single European currency was “irreversible”, and added:
In order to create the fundamental conditions for such risk premia to disappear, policy-makers in the euro area need to push ahead with fiscal consolidation, structural reform and European institution-building with great determination.
He also said the ECB could “undertake outright open market operations of a size adequate to reach its objective” - indicating that the ECB would be resuscitating its programme of buying bonds from its member governments.
Draghi said the move would not be implemented before September – and could only apply to member states which had entered formal programmes with EU bailout funds.