Speaking to a business audience in Italy this morning Greek fin min Yanis Varoufakis has warned that ECB QE will create an unsustainable stock market rally and is unlikely to boost Eurozone investments.
QE is all around us and optimism is in the air. At the risk to sound the party pooper ... I find it hard to understand how the broadening of the monetary base in our fragmented and fragmenting monetary union will transform itself into a substantial increase in productive investments.
The result of this is going to be an equity run boost that will prove unsustainable
Varoufakis reiterated that the new Greek government was ready to time its promised anti-austerity measures in a way that helped negotiations with European Union partners over the disbursement of financial aid.
He told reporters on the sidelines of the conference:
We have never said we're going to renege on any promises, we said that our promises concern a four-year parliamentary term
They will be spaced out in an optimal way, in a way that is in tune with our bargaining stance in Europe and also with the fiscal position of the Greek state
Reuters carries more here
