Readers like you keep news free for everyone.

More than 5,000 readers have already pitched in to keep free access to The Journal.

For the price of one cup of coffee each week you can help keep paywalls away.

Support us today
Not now
Wednesday 7 June 2023 Dublin: 9°C
tillwe via Creative Commons
# Eurozone
Tick tock... All eyes on the euro when markets open on Monday
Will the ECB step in tomorrow or try to wait things out?

BERLUSCONI IS GONE. No doubt, world leaders across Europe are busting open the prosecco, cheering alongside the people on the streets of Italy.

But of course there’s no great reason to think that the next PM of Italy (likely Mario Monti) will be much better at enacting reforms, or that any said reforms will keep the bond wolves at bay.

No, what we’re going to be watching on Monday is whether the ECB – lead of course by Italian Mario Draghi – will seriously jump into the market and suppress Italian yields. We’re not talking about a bond buying programme, we’re talking about explicit yield suppression.

We’ve been talking about this possibility of a Monday intervention for the past few days, starting with the huge interest rate spiral back on Wednesday.

Now with Silvio gone, that theory will be put to the test.

If the ECB gets in, it will be the first game-changer of the whole crisis. If the ECB waits it out, or only nibbles on some more Italian debt, it might even be worse than the status quo, since it will confirm that even with major changes in leadership, the ECB just doesn’t want to do its part.

- This article by Joe Weisenthal first appear in

Read more: Italy prepares for Mario as Silvio steps down >

Gallery: The 10 most influential people in finance >

Published with permission from
Business Insider
Your Voice
Readers Comments