GOOD NEWS from BCE : "We have a powerful tool to avoid damaging scenarios with possible severe challenges for price stability," Draghi said, quoted by Bloomberg.

European Central Bank (ECB), the guardian of the euro, monetary policy has kept interest at 0.75% in yesterday's meeting the Governing Council and the President of the institution, Mario Draghi, has announced a program of bond purchases Unlimited, part of efforts control to bring high interest rates the borrower some euro area countries. Criticism of the plan did not fail to appear.
"We have a powerful tool to avoid damaging scenarios with possible severe challenges for price stability," Draghi said, quoted by Bloomberg. Previous program run by ECB bond purchases (Securities Markets Programme - SMP) ended, he said, adding that the ECB should be in place to ensure the transmission of bank rates to all Member States of the euro area.
Head ECB's credibility at stake with bond purchase plan announcement, saying MEPs this week that the ECB should intervene to regain control fragmented interest in the euro area economy and save the single currency. States with problems, Spain and Italy, can start an application program for emergency financial aid to fund the euro area, the European Stability Mechanism. But his support is conditional on austerity measures.

"Governments must be prepared to operate" emergency fund bond markets when necessary and "strict conditions and effective," said Draghi. The ECB reserves the right to discontinue purchases of bonds if governments do not trespectă commitments. Purchases will be sterilized completely, so that the impact on money supply is neutral, and the bank will publish monthly data by country on bonds it holds. Maturity bonds covered by the ECB on the secondary market will be for 1-3 years without a limitation on randamentelelor and institution will have the same status as any other creditor countries.
Critics
"There was nothing new. Much depends on the country that requires help European Stability Mechanism and Spain does not seem ready. This means that many decisions remain in the hands of politicians. Germany may impose tough conditions of a potential plan to stop Rajoy Spanish (Prime Minister of Spain, no) to accept help, "commented François Savary, CIO of Swiss financial group Reyl for The Telegraph.
Edward Smyth, director of investments at JN Financial London, was of the view that Draghi "has not done enough to restore confidence at this turning point."

Ranvir Singh, chief executive RANsquawk, said that Germany wants to stand in the way will not be easy. "For the Bundesbank, to keep inflation under control is something holy and bank president did not hide the fact that the ECB plan to buy the debts of weaker eurozone economies will be the road to ruin," he said, quoted by the Guardian.
Jason Conibear, Director of Trading at Cambridge Mercantile, wonders whether the ECB will be forced to write checks and greater than or promise on holding his vast powers will be enough to calm markets.
He believes that the ECB can not do much to save the euro. Worse prognosis ECB eurozone economic growth this year and next because of higher uncertainty on adjustment measures in the financial and non-financial, high unemployment and uneven global recovery.
Thus, euro area GDP this year will record a decrease of -0.6% and -0.2%, while the forecast for 2013 is between -0.4% and 1.4%.
In June, the ECB predict a GDP growth between -0.5% and 0.3% this year and 0 to 2% in 2013.
Its liquidity
Firefighters were called to the headquarters of the European Central Bank (ECB) for "emergency cash", writes the Financial Times, after they were asked yesterday to intervene in the institution's headquarters in Frankfurt.
"The ECB someone to sing a little too literally Lich emergency calls?", Asked publication, commenting that no analyst has predicted the situation.