ECB’s Knot says there is no proposal for sovereign QE yet
ECB Governing Council member Klaas Knot says policy makers will have a discussion next month on the necessity of sovereign quantitative easing, de Volkskrant reports after an interview.
Overall, he sounded reluctant without assurances of structural reform.
“As long as Europe isn’t politically willing to share more risks within the euro zone, it’s not up to us to take such a decision ourselves via the back door,” Knot said.
He said monetary policy coordination without political cooperation is unstable. He adds that the population in northern Europe has a “deep distrust” of the willingness of southern European countries to make “painful, internal reform measures”