New ECB Boss Inherits a Thorny Euro Zone Debt Challenge
Mario Draghi may need to continue the central bank’s controversial bond purchases to stem the crisis and save the euro.
By Tom Buerkle
Consider it a parting gift.
After eight years as head of the European Central Bank, Jean-Claude Trichet firmly blocked efforts by French President Nicolas Sarkozy to make the central bank promise to keep buying Italian and Spanish bonds as part of Europes debt agreement last month. Trichet, who began the controversial bond purchases with Greece in 2010 only to see two German ECB board members resign in protest, was determined to extricate the central bank from the bond market and put the burden of rescuing the euro zone periphery....