Wednesday, 21 January 2015

Quotable quotes

There are some quotable quotes in the today's Financial Times .

Alexis Tsipras, who will probably be the next Greece Prime Minister after next weekend's election says (in an Opinion piece titled 'Greece can balance its books without killing democracy'):

"Balancing the government's budget does not automatically require austerity.  A Syriza government will respect Greece's obligation, as a eurozone member, to maintain a balanced budget and will commit to quantitative targets.   However it is a fundamental matter of democracy that a newly elected government decides on its own how to achieve those goals."
"Austerity is not part of the European treaties; democracy and the principle of popular sovereignty are" 
"Our manifesto contains a set of fiscally balanced short term measures to mitigate the humanitarian crisis, restart the economy and get people back to work.  Unlike previous governments we will address factors within Greece........we will stand up to the tax-evading economic oligarchy" 

Martin Wolf in an opinion titled 'Bolder steps from Europe's central bankers' 
  "It seems that QE will be implemented (by the ECB) in the teeth of opposition.......from the German political establishment.   This raises questions about the sincerity of the latter's commitment to ECB independence"
"QE is going to horrify the burghers of Germany, but it must now happen..... everything is fine in Germany, but Germany is not the eurozone" 

And on the front page report there is is :

"To appease QE's German opponents, which includes the chancellor Angela Merkel herself,  Mr Draghi is expected to say that bonds bought will remain with the national central banks, so losses will not be spread among eurozone members. 
In Italy the finance ministry and the central bank have warned against watering down QE. " it's good the ECB is buying government debt but it would be a defeat for Draghi and a win for Merkel if the purchases were delegated to the central banks of each state" 
This potentially breaks the EU rules. It is as if it's accepted that the euro area's modus operandi is to clear things with Germany, and for the ECB to constrain its actions to what is best for Germany"

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