The meeting was held behind closed doors, but there was massive media interest as European Central Bank President Mario Draghi arrived to address the Economic Affairs Committee. Officially, details remain secret, but they did suggest a more communitarian approach. If we want a United States of Europe, we are obliged to mutualise the debt. This is a federal project. It was quickly leaked that Mr Draghi had told MEPs the ECB could buy short-term government bonds without breaching EU treaties that prevent it financing governments. Financial markets reacted immediately: the euro rose against other currencies and borrowing costs fell for debt-struck countries. But more may yet be needed. If you overdo the consolidation without any new growth and without any new investment, then in two or three years you end up with more debt than before. The Economic Affairs Committee continued to meet behind closed doors for 2.5 hours, with Internal Market Commissioner Michel Barnier explaining his plans for insuring a banking union works. He spoke to the media later. The regulatory framework remains that of a single rule book for the 27 EU countries, and, as I said a few months ago, only one single rule book, not two or three. Mario Draghi will explain his plans on Thursday following a meeting of ECB governors, the same day the Commission President meets the Italian Prime Minister and Chancellor Merkel travels to Madrid. There’s a lot going on to protect the euro.
EuroparlTV video ID: 748e1d68-7a20-4e40-b616-a0c20119f9e0