Draghi signals support amid German misgivings

Mario Draghi appears to have tacitly endorsed the restructuring of the promissory notes.

In many ways the stakes could not be higher for the ECB. It has a strict mandate, which prohibits monetary financing under any circumstances. If it didn’t comply with this rule, then its credibility would be badly undermined.

Monetary financing is providing direct funding for any member state government. The Government replaced €28bn in promissory notes with long-dated government bonds.