Draghi Lays Foundation for Liquidity, Consob’s Vegas Tells Sole

European Central Bank President Mario Draghi laid the foundations last week to provide “all the liquidity that is needed” even if the bank decides not to intervene immediately, Giuseppe Vegas, head of Italy’s market regulator Consob, told daily Il Sole 24 Ore in an interview.

This should give the region’s governments “the necessary time” to pass economic reforms, Vegas told the newspaper. The market initially misunderstood Draghi’s remarks, he said.

Recent yield spread levels between Italian bonds and German bunds are “unjustified” and mainly due to external contagion, Vegas said, according to Il Sole.

To contact the reporter on this story: Chiara Vasarri in Rome at cvasarri@bloomberg.net

To contact the editor responsible for this story: Jerrold Colten at jcolten@bloomberg.net

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