Draghi says troubled Eurozone is at last returning to normality

Tim Wallace
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THE EUROZONE is getting back to normal thanks to the European Central Bank (ECB) offering unprecedented levels of support to governments, ECB head Mario Draghi claimed yesterday.

Draghi told an audience in Beijing that his offer to buy bonds of troubled governments in outright monetary transactions (OMTs) – on the condition that they implement tough economic reforms – is driving states to take the right action, as well as reassuring investors.

“A sign of normalisation, and a very important one for German savers, pension funds and insurance companies, has been the increase in German government bond yields, previously suppressed by panic-driven safe-haven flows, which have edged up by around 25 basis points,” he said.

“The establishment of OMT has been beneficial to everybody: sovereigns, corporations, banks as well as individuals, and it has benefited both periphery and core countries.”