ECB president hints at more support for euro

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ECB president hints at more support for euro

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ECB seemed willing to consider bolder action to address the continent's financial crisis.

02 December,2011 02:47 am

More than ever before, the European Central Bank (ECB) seems willing to consider bolder action to address the continents financial crisis.A month ago, at his first news conference as ECB President, Mario Draghi said it was pointless for European governments to expect the bank to rescue them through massive bond purchases. That had been the same stance as his predecessor, Jean-Claude Trichet. But On Thursday, Draghi hinted that such expectations might not be futile after all.Draghi opened the door to further ECB intervention ever so slightly in a speech to the European Parliament. He said the bank is prepared to play a bigger, yet limited role in the resolution of Europes debt crisis but only after the 17 countries that use the euro tether their economies more tightly.Speculation is mounting that EU leaders will align their spending policies more closely to bring government debt levels under control in the future. This must happen, Draghi said Thursday, before the ECB or other institutions could take more aggressive steps to help prevent the continents current debt overload from ripping apart the euro and the global financial system.Other elements might follow, but the sequencing matters, Draghi said. And it is first and foremost important to get a commonly shared fiscal compact right.Draghi gave the speech after delivering the banks 2010 annual report to the European Parliament, a body of elected representatives to which the ECB is accountable.Analysts decoding Draghis message which was delivered in typically vague central bank speak sensed an opening they hadnt heard before.