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Quatremer asks what kind of steps could be taken to support Greece: purchases of Greek debt by each member state or by the ECB on the secondary market?
L'hypothèse que l'on mettrait en place un instrument consistant à échanger des titres est valable. Ce n'est probablement pas la seule initiative que nous pourrions prendre. L'essentiel est que ces instruments bilatéraux, puisque l'Union ne peut intervenir directement, soient coordonnés au niveau de la zone euro. Il faut que cette aide à la Grèce apparaisse comme une mesure cohérente, déterminée et coordonnée de la zone euro. Il est dommage que plusieurs Etats se soient opposés dans le passé à la création d'un instrument qui nous aurait permis d'émettre des euro-obligations, ce qui aurait été plus simple. Mais, au moins, il y aura une réaction coordonnée de la zone euro.
"It's a valid hypothesis that we would set up a securities exchange instrument. This is probably not the only initiative we could take. The main thing is that these bilateral instruments, since the Union can't intervene directly, should be coordinated at Eurozone level. This support for Greece must appear as a coherent, determined, and coordinated step taken by the Eurozone. It's a pity that some countries objected in the past to the creation of an instrument that would have allowed us to emit Eurobonds, which would have been simpler. But, at least, there will be a coordinated response from the Eurozone."
Wait, is Juncker claiming the ECB cannot set a floor to Greek bond prices on the secondary market, is he ignoring the issue, or did Quatremer not ask explicitly?

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Fri Feb 12th, 2010 at 02:32:54 PM EST
I think he is saying the Union cannot intervene.

Otherwise he is saying that the Eurozone members and/or the ECB can.

As for Quatremer, see his question.

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Feb 12th, 2010 at 02:52:31 PM EST
[ Parent ]
Quels types de mesures peuvent être prises ? Des achats de dette grecque par chaque Etat ou par la BCE sur le marché secondaire ?

Okay, so Juncker totally obviates the role the ECB could play in his reply though the question mentions it explicitly. Which is fair, he can't speak for Trichet, the ECB being independent and all.

But the ECB is an institution of the Union,  the one "responsible for monetary policy".

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Fri Feb 12th, 2010 at 02:59:26 PM EST
[ Parent ]
This concerns the Eurozone, and the Euro, for which the ECB has particular responsibilty (as does Juncker).

Otherwise, what can the Union do, with its piffling budget?

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Feb 12th, 2010 at 03:08:48 PM EST
[ Parent ]
Juncker: "on ne laissera pas tomber la Grèce" - Coulisses de Bruxelles, UE
Quels types de mesures peuvent être prises ? Des achats de dette grecque par chaque Etat ou par la BCE sur le marché secondaire ?What type of measure can be taken? Purchases of Greek debt by each member state or by the ECB on the secondary market?
by afew (afew(a in a circle)eurotrib_dot_com) on Fri Feb 12th, 2010 at 03:02:43 PM EST
[ Parent ]
Juncker doesn't mention the ECB in his answer unless under "the Union", and if you interpret "the Union" to include the ECB, his answer is wrong on the letter of the Treaties.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Fri Feb 12th, 2010 at 03:05:46 PM EST
[ Parent ]

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