Draghi: Rates were too disjointed across euro area
- Caused by unfounded fears of euro area break-up
- Has enormous respect for Bundesbank; many of its concerns shared by members of governing council
- ECB had a chance to say no to everything; chose to act
- OMT to help stabilize many markets
- Have seen real money flows back into euro area; investors recognizing policy progress
- ECB actions in Germany’s interests, have been beneficial for Germany
- Stable euro area supports a strong Germany; strong German economy supports a stable euro
- OMT solely to support monetary policy transmission (cough, cough)
- OMT comes with strong conditionality
- Does not represent financing of governments
- OMT does not solve underlying debt crisis; actions from governments must follow