Seamus Coffey: A good soundbite from Mario Draghi. Now for the action to back up that big talk
THE focus of the past week has been on looking for explanations for the continued rise in Spanish borrowing costs. The daily reports on Spain have, to varying degrees, focused on losses in the banks, the difficulties of regional governments, the lack of growth in the economy or the delays in getting the budget deficit under control.
In truth none of these can fully explain the yield rises of the past few weeks. There are huge difficulties in Spain but these have been known for months. Growing doubts about the capacity at official and political level to deal with the crisis has contributed to sentiment in recent weeks.
The eurozone faces a complicated set of interlinked problems. One of these is the design of the monetary union itself and includes the continued absence of a credible lender of last resort for governments.