Mario Draghi rebuffed German criticism of his attempts to stem the eurozone debt crisis, as the European Central Bank drafts plans to intervene in sovereign bond markets.
The ECB president said it was justified for the bank to use “exceptional measures” as part of its mandate to keep prices stable in the eurozone. “Fulfilling our mandate sometimes requires us to go beyond standard monetary policy tools”, said Mr Draghi, who is expected to outline the ECB’s intervention strategy on September 6.
Draghi appeared to be addressing the split between ECB officials and Germany’s Bundesbank, the most influential national central bank in the eurozone. The Bundesbank opposes ECB bond purchases aimed at holding down borrowing costs for eurozone Member States such as Spain and Italy. Attempting to assuage German concerns over possible politicisation of the ECB as well as the investment risks it would bear, Mr Draghi said the central bank would always act independently and within its mandate to keep prices stable. “Germany needs to remain an anchor of a strong currency, at the centre of a zone of monetary stability and in a dynamic and competitive euro area economy”, he added. “Only a stronger economic and monetary union can provide this.”
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