Draghi neutered by German elections

It is no exaggeration to say that ECB president Mario Draghi has been by far the most effective bulwark against euro armageddon over the past year.

His speech in London on Jul 14, 2012, that he “would do whatever it takes to save the euro” immediately drew a line under the crisis that threatened to tear the single currency apart.

It was the first time since the financial market meltdown in 2008 that there had been firm leadership. However, there is only so much Mr Draghi can do and he has reached those limits. At the ECB monthly meeting yesterday, it was obvious the ECB president has been neutered by the looming German elections.