European Central Bank President Mario Draghi hit back at German criticism of his plan to intervene in bond markets and reminded Europe’s largest economy of its responsibility to anchor the euro.
The ECB “will always act within the limits of its mandate,” Draghi wrote in a commentary for German newspaper Die Zeit provided by the Frankfurt-based ECB today. “Yet it should be understood that fulfilling our mandate sometimes requires us to go beyond standard monetary policy tools.”
Members of Merkel’s Christian Democratic Union and its Free Democratic Party coalition partner said the ECB could become a risk to the financial system if it sticks to plans to resume bond purchases, Handelsblatt reported today. The ECB’s attempts to change the foundations of the euro are illegal, Frank Schaeffler, the FDP’s parliamentary finance spokesman, told the newspaper.