Draghi’s QE programme doesn’t go far enough – Hayes

Brian Hayes, Fine Gael MEP for Dublin today (Thursday), said that the ECB’s Quantitative Easing programme does not go far enough due to the low level of risk-sharing associated with the programme.

“While I welcome the fact that the size of the ECB’s Quantitative Easing programme is bigger than expected, approximately €1.1 trillion, the low level of risk-sharing does not address the problems which may arise due to the interconnectedness of the Eurozone’s monetary system.

“Mario Draghi said that only 20% of the asset purchases will be subject to risk-sharing. Leaving national central banks to bear the main responsibility for any default that could potentially lead to a dangerous situation in the Eurozone. When the Eurozone is affected by a crisis, there should be a collective and mutualised response.

“It is clear that Draghi has compensated risk-sharing for bigger bond purchases, possibly due to the concerns of some Member States that have more stable levels of sovereign debt.

“Ultimately we should recognise that Quantitative Easing on its own will not defeat the threat of deflation. A co-ordinated EU wide push for greater public and private investment will be required to increase demand, drive growth and create jobs.”