Trading by headlines continue with this now, “There is no concrete planning that I know about, but there is a possibility of purchasing sovereign bonds on the secondary market.” Since the ESM doesn’t exist yet, she is likely referring to the EFSF which already has the capability of intervening “in the debt primary and secondary markets. Intervention in the secondary market will be only on the basis of an ECB analysis recognizing the existence of exceptional financial market circumstances and risks to financial stability.” http://www.efsf.europa.eu/about/index.htm. Thus, this is not for Merkel to decide as the EU already has their entity to buy bonds with only the question of when and whether to use it. But as seen with the ECB bond buying, this is just dealing with the symptoms and not the disease.
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