"The adherence of governments to their commitments and the fulfilment by the EFSF/ESM of their role are necessary conditions. "The Governing Council, within its mandate to maintain price stability over the medium term and in observance of its independence in determining monetary policy, may undertake outright open market operations of a size adequate to reach its objective. "Furthermore, the Governing Council may consider undertaking further non-standard monetary policy measures according to what is required to repair monetary policy transmission. Over the coming weeks, the Eurosystem will design the appropriate modalities for such policy measures".
ECB President Mario Draghi indicated after last Thursday's council meeting that the bank was ready to buy bonds to ease the pressure on eurozone states facing soaring borrowing costs in the near future if those countries also sought help from the rescue funds. The comments disappointed investors, who had been expecting immediate, unconditional action from the ECB. But the markets soon reversed the losses and the yields of the bonds of countries at the centre of the crisis, such as Spain and Italy, have dropped. (ANSAmed)