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"ECB action is required but it cannot do the whole job on its own"
- Thomas Mirow, president of the EBRD
The European Central Bank may lose credibility if it will conduct large scale intervention in the bond market, said European Central Bank President Mario Draghi on Friday. He also urged euro zone governments to kick-start the European Financial Stability Facility bailout fund.
"Losing credibility can happen quickly -- and history shows that regaining it has huge economic and social costs," Draghi said. Keeping prices stable "is the major contribution we can make in support of sustainable growth, employment creation and financial stability. And we are making this contribution in full independence."
"ECB action is required but it cannot do the whole job on its own," said Thomas Mirow, president of the European Bank for Reconstruction and Development and a former deputy German finance minister at the same event as Draghi.