"We will have a fully effective backstop to avoid destructive scenarios," told Draghi to a press conference, while outlining the plan. The ECB will offer to purchase eurozone countries’ short-term bonds in the secondary market in a programme dubbed “Outright Monetary Transactions”, or OMT, which it hopes will address “distortions in financial markets”.
But according to the Financial Times, there had been some opposition to the plan within the ECB, with most political observers believing it to be Deutsche Bundesbank president Jens Weidmann.
Weidmann had previously asserted that such bond purchases were “tantamount to financing governments by printing banknotes,” while the Bundesbank also made the unusual step of commenting publicly immediately after Draghi’s declaration that “the announced interventions carry the additional danger that the central bank may ultimately redistribute considerable risks among various countries’ taxpayers.”
“To fly in the face of Germany’s wishes will not have been easy,” said Ranvir Singh, CEO of the market analysts RANsquawk, to The Telegraph. “For the Bundesbank, keeping inflation in check is an article of faith. Its president has made no secret of the fact that he regards the ECB plan to buy the debt of the Eurozone’s weaker members as the road to perdition.
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Draghi himself conceded that there was one "no" vote to the OMT programme, though he was reluctant to name the dissenting voice.
"I will leave you to guess who that was,” Draghi told reporters.
Besides Weidmann, other German politicians have spoken up against the plan.
"If we start wanting to resolve the problems of financial policy through the more convenient means of monetary policy, we will have a problem," said German Finance Minister Wolfgang Schaeuble to Reuters.
"Central banks are autonomous so that the more convenient path of printing money is barred to politicians," Schaeuble said.
According to a poll cited by MoneyControl, 42 percent of Germans said that they have little or no trust in ECB President Mario Draghi.
Some 18 percent said they held Draghi in esteem, while a further 31 percent said they did not know him and 9 percent had no opinion.