The Daily Telegraph can confirm reports in Der Spiegel that ECB technicians are examining plans to cap Spanish and Italian bond yields, among other options. This may prove to be the “game changer” that critics around the world have been demanding for two years.
The ECB’s director-general of market operations, Ulrich Bindseil, is spearheading the plans in talks with experts from the ECB’s family of national central banks. Market, monetary policy and risk management committees are working to put together a draft.
“They don’t take sides. They just lay out the pros and cons and leave it to the governing council to decide,” said one EU diplomat.
Mr Asmussen was appointed to the ECB by Germany’s chancellor, Angela Merkel, in January and is close to her inner circle. He was on holiday when the ECB council – 17 national governors and six board members – backed the Draghi Plan earlier this month. It was unclear at the time whether he would acquiesce or join the Bundesbank in protest.
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