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Martin Liby Troein: the ECB did what it took to save the euro – and now you have to do it all over again

When the eurozone crisis was at its peak in July of 2012, it looked like a bunch of southern european countries would be unable to cope with their debts. The in

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Martin Liby Troein: the ECB did what it took to save the euro – and now you have to do it all over again

When the eurozone crisis was at its peak in July of 2012, it looked like a bunch of southern european countries would be unable to cope with their debts. The interest rates they paid, rushed to the roof. Germany, which had been the order of the central government was not interested in sending money, but a difficult out.

in Italy, france, Spain, Portugal, and Greece was on the verge of bankruptcy. The single currency is likely to collapse.

When declared in the head of the ECB, Mario Draghi, that the central bank was prepared to do ”whatever it takes” to save the euro. This meant, among other things, the large the buy out of the crisis-ridden countries ' bonds, showing that the monetary union will certainly be willing to take on the responsibility of the members of the situation. Private investors will dare to also buy. Interest rates have been pressed down.

an enormous strain on the economies of Europe. In order to deal with them will require a major fiscal nödpaket to help people who are at home, work, business without customers. This in turn means that the major government deficits.

It is understood that Lagarde is rolled back, Draghi pledged that the ECB was ready to do ”whatever it takes”.

the Worst affected are, so far, Italy and Spain, whose public finances are still shaky.

the ECB's new head, Christine Lagarde, all of a sudden, it was the central bank's role is to ensure that the spreads among the various euro area countries did not become too large. It is understood that, as she rolled back to Draghi's pledge that the ECB was ready to do ”whatever it takes”. Interest rates rose immediately, and, above all, in the case of Italy, but in fact, in the whole of the euro area.

On Wednesday night, beating the Lagarde held that the central bank will buy bonds of eur 750 billion. A massive undertaking.

It is essential that the ECB is doing all it can. Hopefully, it is sufficient to provide the eurozone countries with the financial muscle that is required to be : to keep the economy afloat.

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