Pulling the OMT trigger

Mario Monti should ask the European Central Bank to intervene now in support of Italy’s finances

Europe has been experiencing a period of calm after the storm since European Central Bank President Mario Draghi’s “whatever it takes” speech in July, and the ECB’s decision in September to proceed with its ‘outright monetary transactions’ (OMT) programme to purchase distressed eurozone members’ government bonds. The interest-rate spreads for Italian and Spanish government bonds have dropped dramatically, corporate-bond issues have resumed, and a sense of normality is slowly pervading the continent.

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