A last-ditch rescue plan for the eurozone has started to take shape after Mario Draghi hinted that a “fiscal compact” could pave the way for a more aggressive European Central Bank response to the region’s escalating debt crisis.
An agreement binding governments to strong rules on public finances would be “the most important element to start restoring credibility” with financial markets, the ECB president told the European parliament on Thursday. “Other elements might follow, but the sequencing matters,” he added.
His comments on Thursday indicated that the ECB could ramp up its bond buying programme after a European summit on December 9.