Editorial Board
Euro-Area Bond-Buying Plan Is Progress
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European Central Bank President Mario Draghi has announced his much-anticipated bond-buying plan. The short version: The bank will purchase sovereign bonds on the open market in unlimited quantities, but only after troubled countries request the aid and agree to fiscal conditions that other euro-area governments would impose.
It’s not the shock and awe we called for, but it is an important move and could relieve the financial pressure on Spain, Italy and other distressed euro-area governments. However, we have a few reservations.