Following today’s opinion by the European Court of Justice that the ECB’s Outright Monetary Transaction (OMT) programme is compatible with EU Treaties, ECON Committee member of the European Parliament, Brian Hayes MEP said that this represents a positive message to the Eurozone economy. It also sends out a strong signal that the ECB must do what’s in the interest of all 19 member states in the euro zone.”
Speaking in Strasbourg, Mr. Hayes said: “The green light that the European Court of Justice has given today to the ECB to buy government bonds sends out a positive signal to Europe at the start of 2015.”
“OMT, outright monetary transaction, is more theory than practice for most EU member states. But having this bond buying devise available as a last resort – will steady nerves and give confidence to the markets that the Euro will be protected at all costs.”
“The very existence of OMT, as a legally acceptable instrument, will boost confidence in the euro. It follows a range of ECB initiatives from the Asset Backed security programme to the LTRO programme which offers Eurozone a further stability instrument in times of stress.”
“Europe needs to move on from the financial crises. It’s taken a long time to regain confidence. The threat of deflation is real and brings with it appalling vista that a long recession could become a long depression. While Germany may not be entirely happy with today’s ruling, it needs to understand that the ECB is made up of 19 member states. Giving powers to the ECB, which have their basis in law, is the only hope for Europe”, concluded Mr. Hayes.