A few weeks ago Mario Draghi, president of the European Central Bank, unleashed the bazooka. He promised that the ECB would come to aid of Spain and Italy, purchasing their unwanted government bonds under operations called “outright monetary transactions”. Although implementing OMT would not be a simple process — it would require Spain to formally ask for the kind of bailout that it has so far forsworn — the markets rejoiced. It seemed like the ECB would finally help to put a line under the European debacle.
But look at what’s happened since then:
- Spain’s Protesters Encircle Parliament
- Portugal Finally Stands Up and Protests
- Greek State Tries to Stem neo-Nazi rise
The markets’ relief is apparently not shared by the people in the countries directly affected. How will the leaders of these countries be able to push through more austerity measures in the face of these political developments? Europe is a long way from being solved.