The European Central Bank's bond-buying plan and expectations of more monetary stimulus measures boosted the region's equity markets, but renowned New York University economics professor Nouriel Roubini says the ECB's plan is ''not a game changer''.
Cheered by markets. Jeered by conservative newspapers in Germany, putting substance behind the promise of doing whatever it takes to save the euro was never going to be universally popular. On a visit Austria Chancellor Angela Merkel defends the European Central Bank following an uproar in Germany over the ECB's new bond-buying programme. SOUNDBITE: GERMAN CHANCELLOR ANGELA MERKEL, SAYING (German) : "The ECB is independent and therefore making its own decisions and I see yesterday's decision as positive because it is another step in the direction of making state bonds safe again, also in the eyes of international investors." But just how significant was the ECB's action? Economist Nouriel Roubini says it's not a game changer. SOUNDBITE: Nouriel Roubini, Professor of Economics at New York University saying (English): "First of all, they've not yet fired the bazooka. They've said they have a big bazooka and they've sort of shown they have one. And using it is going to imply countries applying for the MOU and triggering the support. And in those negotiations, by the way, the ECB has said, we want strict conditionalities, not going to be light. So there maybe this agreement between Spain and IMF, ECB and EU on what's necessary. I think it buys you time to do other things." But with European shares extending gains, the euro making progress against the dollar and borrowing costs falling for Spain and Italy, time to is proving to have its own very real value. Matt Cowan, Reuters