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26 Jan 2015
ECB’s Knot criticises QE – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team shares Davos ECB’s Knot’s comments in Davos, where he expressed that he was not convinced about the “necessity and effectiveness” of ECB’s QE program.
Key Quotes
“[..] speaking in Davos ECB Pres Draghi called for deeper integration in the areas of competition, bureaucracy reduction and labor market reform. ECB's Knot (Netherlands) joined Weidmann in criticizing the ECB QE announcement, stating he was not convinced of the program's "necessity and effectiveness". On the other side, Mersch (Luxembourg) said German reservations on QE were taken into account "only when you read small print", while Italy's Visco went as far as to state he would have preferred to see the ECB shoulder all the financial risks of QE rather than just 20% as was decided.”
“Separately, Italian Econ Min Padoan announced Italy is considering setting up a "bad bank" to help clean up the troubled financial sector, given that troubled loans reached €181B as of November, more than double the 2010 levels.”
Key Quotes
“[..] speaking in Davos ECB Pres Draghi called for deeper integration in the areas of competition, bureaucracy reduction and labor market reform. ECB's Knot (Netherlands) joined Weidmann in criticizing the ECB QE announcement, stating he was not convinced of the program's "necessity and effectiveness". On the other side, Mersch (Luxembourg) said German reservations on QE were taken into account "only when you read small print", while Italy's Visco went as far as to state he would have preferred to see the ECB shoulder all the financial risks of QE rather than just 20% as was decided.”
“Separately, Italian Econ Min Padoan announced Italy is considering setting up a "bad bank" to help clean up the troubled financial sector, given that troubled loans reached €181B as of November, more than double the 2010 levels.”