Mario Draghi is preparing his most ambitious step yet to revive the euro zone’s moribund economy – and many say it will be dead on arrival.
The plan by the European Central Bank’s president to buy hundreds of billions of euros worth of government bonds in the 18-nation euro zone could begin as early as next year, analysts told Handelsblatt.
It is a last gasp effort by Mr. Draghi and the ECB to right the European ship and end the continent’s economic doldrums.
While the euro zone is out of recession for the moment, growth in the currency bloc has remained well below 1 percent. Economists at Germany’s Commerzbank are predicting that inflation could fall to zero percent in January from its current 0.3 percent, bringing deflation – the current archenemy of global economists – ever closer.