The European Central Bank, which has spent more than €1 trillion to cap surging borrowing costs in nations such as Spain and Italy, is saying it can do little more to halt the crisis until governments act.
Governments need to take “a brave leap” to ensure closer integration, without which the central bank can only offer temporary solutions, according to ECB President Mario Draghi. Politicians such as Spanish Prime Minister Mariano Rajoy say the central bank should implement additional measures including boosting bond purchases.
Rajoy left a summit of European Union leaders in Brussels calling on the ECB to act to bring down rising borrowing costs in some of the 17 euro countries. Greek, Irish, Spanish and Italian bonds are the worst performing of 26 sovereign debt markets this quarter.
“If public debt isn’t sustainable, we have a problem”, Rajoy said. “I insist it is up to the ECB to take this decision that it has already taken in the past.” "It’s one thing that leaders might make some decisions, but it’s another thing for them to implement them”, he said. “The process has shown to be very slow, so the prospects are higher for the ECB coming back into the market to stabilise it.”
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