Draghi changed ECB tactic in Greek crisis

Mario Draghi can’t afford to play by the same crisis rules as the European Central Bank did in the past.

With Ireland in 2010 and Cyprus in 2013, a threat to withhold aid for lenders forced each country to agree to international bailouts. This time, Greece’s appetite for brinkmanship has so far left the ECB president dependent on Europe’s politicians to deliver the ultimatums, while policymakers have reluctantly kept Greek banks afloat.

Through weekly, and now almost daily, doses of liquidity, ECB support for those institutions has given Greece’s government room to negotiate a bailout with creditors until the 11th hour without imposing capital controls. That’s riled sticklers for rules on the ECB governing council, but such pliancy is a price Mr Draghi may have paid to keep the euro intact.