Mr. Mario Draghi, president of the European Central Bank (ECB), has made the boldest move yet to halt the economic crisis that threatens the solvency of European governments, the future of the euro and the very dream of a European Union.
The week before last, Mr. Draghi announced that the ECB will buy unlimited amounts of government bonds in an attempt to provide confidence — and a ceiling on interest rates — to countries being swamped by debt. It is the right move, but its success depends on the commitment of politicians, not just bankers, to the European Union and joint action. Despite Mr. Draghi's bold move, that commitment is not assured.
As Europe's vulnerable economies struggle to cope with mountains of debt, triggered by spending that far exceeds revenues, the key question has been the sustainability of recovery packages that focus on austerity measures as unemployment mounts.