Correspondent, Brussels
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Dec 19, 2014

ECB considers making weaker euro zone states bear more QE risk -sources

FRANKFURT, Dec 19 (Reuters) – European Central Bank
officials are considering ways to ensure weak countries that
stand to gain most from a fresh round of money printing bear
more of the risk and cost.

Officials, who spoke on condition of anonymity, have told
Reuters that the ECB could require central banks in countries
such as Greece or Portugal to set aside extra money or
provisions to cover potential losses from any bond-buying,
reflecting the riskiness of their bonds.

Dec 19, 2014

Exclusive: ECB considers making weaker euro zone states bear more QE risk – sources

FRANKFURT (Reuters) – European Central Bank officials are considering ways to ensure weak countries that stand to gain most from a fresh round of money printing bear more of the risk and cost.

Officials, who spoke on condition of anonymity, have told Reuters that the ECB could require central banks in countries such as Greece or Portugal to set aside extra money or provisions to cover potential losses from any bond-buying, reflecting the riskiness of their bonds.

Dec 19, 2014

Exclusive: ECB considers making weaker euro zone states bear more quantitative easing risk – sources

FRANKFURT (Reuters) – European Central Bank officials are considering ways to ensure weak countries that stand to gain most from a fresh round of money printing bear more of the risk and cost.

Officials, who spoke on condition of anonymity, have told Reuters that the ECB could require central banks in countries such as Greece or Portugal to set aside extra money or provisions to cover potential losses from any bond-buying, reflecting the riskiness of their bonds.

Dec 18, 2014

ECB’s Draghi tells European leaders: hurry investment and reform

BRUSSELS (Reuters) – The president of the European Central Bank urged the region’s leaders on Thursday to speed along a new EU investment plan and renewed his calls for economic reform.

At a meeting of European Union leaders including Germany’s Angela Merkel and France’s Francois Hollande, Mario Draghi warned of the fragile state of the euro zone’s economy where inflation is low as oil prices tumble, according to people briefed on discussions.

Dec 12, 2014

Draghi to urge European leaders to reform to back ECB stimulus

FRANKFURT (Reuters) – The head of the European Central Bank is set to tell European leaders in stark terms at a summit next week that they need to reform straggling economies or risk blunting an ambitious monetary offensive to help revive the stagnant euro zone.

As the central bank inches closer to printing money to buy government bonds, Mario Draghi has become increasingly worried about slack reform in countries such as France and Italy, which he fears will undermine the long-term boost from so-called quantitative easing (QE).

Dec 11, 2014

ECB money printing moves closer as banks show only modest interest in cheap loans

FRANKFURT, Dec 11 (Reuters) – The European Central Bank got
a lukewarm response from banks on Thursday in its fight to
revitalize the sluggish euro zone economy, adding pressure on
policymakers to start printing money next year to buy sovereign
bonds.

Banks borrowed almost 130 billion euros ($160 billion) of
four-year loans from the ECB in its latest lending round, which
is what traders had expected but brings the total take-up to
212.4 billion euros, far short of the 400 billion euro upper
limit identified for the end of the year.

Dec 8, 2014

Nowotny warns of ‘massive’ economic weakness

FRANKFURT (Reuters) – The euro zone’s economy is weakening ‘massively’, one of the European Central Bank’s policymakers warned on Monday, saying that printing fresh money to buy state bonds could help to stop the slide.

Speaking in Germany, the head of neighbouring Austria’s central bank advocated a more ambitious course for the European Central Bank, distancing himself from Germany, where many politicians and its central bank oppose such money printing.

Dec 8, 2014

ECB’s Nowotny warns of ‘massive’ economic weakness

FRANKFURT, Dec 8 (Reuters) – The euro zone’s economy is
weakening ‘massively’, one of the European Central Bank’s
policymakers warned on Monday, saying that printing fresh money
to buy state bonds could help to stop the slide.

Speaking in Germany, the head of neighbouring Austria’s
central bank advocated a more ambitious course for the European
Central Bank, distancing himself from Germany, where many
politicians and its central bank oppose such money printing.

Dec 5, 2014

Germans resist ECB money-printing move, but Draghi gets key support

FRANKFURT/VIENNA, Dec 5 (Reuters) – European Central Bank
policymaker Ewald Nowotny on Friday backed ECB President Mario
Draghi on steps to revive the euro zone economy with new
stimulus, while Germany firmly maintained its opposition to
buying sovereign bonds.

The support of Nowotny, Austria’s central bank chief, may
prove crucial for Draghi as he seeks to expand the scale of ECB
action next year, most likely including quantitative easing
(QE), the printing money to buy government bonds.

Dec 5, 2014

Germany warns ECB against copying U.S.-style money printing

FRANKFURT, Dec 5 (Reuters) – The head of Germany’s
Bundesbank warned the European Central Bank on Friday against
copying the money printing used in the United States and Japan,
saying that it would not have the same impact in Europe.

Speaking a day after ECB President Mario Draghi signalled
further action to shore up the euro zone economy as soon as
early next year, Jens Weidmann cautioned that so-called
quantitative easing may not work in Europe.

    • About John

      "I am a Reuters correspondent in Brussels, writing about the European Union. I moved here last year from Germany, where I had reported about the financial crisis, turning up numerous scoops and even winning a prestigious business reporting award. Beforehand, I worked with The Sunday Times in London."
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