Noonan criticises ECB’s plan on operation of QE
“There will be no mutualisation of risk and it will be a reversal of policy from banking union,” said Mr Noonan at a conference in Dublin Castle organised by the IMF.
Over the past week, leaked reports suggest that, in order to overcome German concerns about quantitative easing, the ECB has devised a scheme that would make it the responsibility of each eurozone central bank to buy up its own sovereign debt. Mr Noonan said that this was effectively the “renationalisation” of the banking sector, even though the purpose of banking union was to mutualise risks across the region.
