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This 7 September, most of the European press is leading with the European Central Bank announcement on "Outright Monetary Transactions" (OMT). This means it will buy an "unlimited" amount of government bonds with maturities ranging from 1 to 3 years on the secondary market. However, these purchases will be subject to "strict compliance". Countries wishing to benefit will first have to seek assistance from the European Financial Stability Fund.
Jens Weidmann, the Bundesbank president, was the only member of the Board of Governors of the European Central Bank to vote against the ECB decision.
ECB decrees unlimited buy-up of debt — under certain conditions – Frankfurter Allgemeine Zeitung
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The Dublin daily writes that the measures could "ease Ireland’s return to private investment markets.”
Radical ECB move may assist Ireland's return to markets – The Irish Times
“The unlimited programme to buy up debt presented by Mario Draghi facilitates Portugal’s return to the markets and decreases the probability of a new bailout.”
ECB plan reduces risk of second Portugal bailout – Público
"The ECB is trying to solve the debt crisis using old tools under more stringent conditions."
ECB initiatives will provide only temporary relief – Aamulehti
The ECB has approved unlimited bond purchases, with only Germany voting against. Spread on Italian debt has dropped to 370 basis points — a 3.7 percent difference with the benchmark German Bund on 10 year bonds.
Draghi wins, markets fly – La Stampa
"The ECB has paved the way for a "diet" style bailout," wrties the Spanish financial paper. "Merkel blesses reforms and Rajoy excludes touching pensions “for the moment”.
Bailout of Spain now up to Rajoy – El Economista
"In office for less than a year, the Italian Mario Draghi has imposed his pragmatism at the head of the ECB."
Debts: Europe mops up (subject to certain conditions) – Libération
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