ECB’s massive EUR 750B Pandemic Emergency Purchase Programme announced overnight won praises from top European politicians. French President Emmanuel Macron said he gives “full support for the exceptional measures taken this evening by the ECB.” He added,”it is now up to us, the European states, to step up to the plate via our budgetary interventions and to show a bigger financial solidarity at the heart of the euro zone.”
Also from France, Finance Minister Bruno Le Maire said “The plan that the European Central Bank announced is the right one… It’s a massive plan because it foresees 750 billion euros ($813 billion) in asset purchases, it will have a strong economic impact because it will allow companies to be better financed and it will have a major political impact, it will reduce the risk of fragmentation in the euro zone.”
Germany’s Economy Minister Peter Altmaier also said, “I hope these measures will also make it clear to the stock markets, to the markets today that Europe will protect its interests and Europe is determined to overcome this crisis”.
The steep fall in Italian bond yield today is also a strong vote of confidence for the ECB. 10-year yield hit as high as 2.961 yesterday but it’s now back at around 1.6.