Thread by @SebCochard_11

@ecb Amount is very big. However the #ECB is very wishy-washy on what is currently crucial:
“For the purchases of public sector securities, the benchmark allocation across jurisdictions will continue to be the capital key of the national central banks” 1/

@ecb Meaning that they will continue to buy mainly German bonds, which is not needed, while not buying massively, over the 33% limit, Italian and Greek bonds, which are going astray since the misstep of #Lagarde last week

@ecb But at the same time:
“To the extent that some self-imposed limits might hamper action that the #ECB is required to take in order to fulfil its mandate, the Governing Council will consider revising them (etc)”
Meaning that they can change mind and focus on Italian & Greek bonds

@ecb 4/ The #ECB “will consider revisiting (the 33% limit) to the extent necessary (...). The ECB will not tolerate any risks to the smooth transmission of its monetary policy in all jurisdictions of the euro area”. The Eurozone is imploding under their eyes: what do they wait for?

@ecb They are 3 elements which must be abandoned by the #ECB if the #Eurozone is to survive:
- Urgent: the self-imposed limit of 33% holdings of outstanding bonds per Member State
-Urgent: the capital key (enough buying German bonds)
- The mandate, which is only about price stability