Mr Draghi looked somewhat more hesitant in his pronouncements on a Eurozone recovery than he had been at Jackson Hole. For many experts, such reticence is logical in view of the latest macro figures. Susana Felpeto, Head of Equity at ATL Capital, points out that TLTROs were well below market projections (€100-120M), but cautions that judgement should not be made before the next round in December.
Former ECB board member Jurgen Stark (who left the bank after the Southern countries´ debt purchase) asserted it will become a “bad bank”. CSU leader and president of Baviera blamed Mr Draghi for “scaring Germans with rubbish buy plans”. According to Felpeto, there will always be opposing voices. Still, without German backup, the ECB wouldn’t have been able to implement the brave measures to boost growth”.
Victoria Torre, Research and Product Director in SelfBank, highlighted the clarity and coherence of the ECB message. She doesn’t expect any further measures as long as the Eurozone meets the inflation scenario envisioned by Mr Draghi. “Unemployment and growth are not its main targets, but the latest messages show the willingness to help out in these fields” she said.
Also on Monday, U.S. Treasury Secretary, Jack Lew, strongly urged Berlin to allow stimulus action in Europe.
“To delay these efforts might make frontal winds stronger whereas Europe needs a tail wind. Major structural reforms are required, but the two can go together. The point is finding a balance,” Torre states. In essence Berlin can’t be asked for further changes in attitude.