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Monday, June 15, 2015

DRAGHI: The ball is in Greece's court

European Central Bank (ECB) boss Mario Draghi is currently speaking at the European Parliament, being quizzed by elected members. If you're that way inclined, you can watch the whole thing here. Investors are looking out for new comments on quantitative easing (QE), the health of the eurozone economy, and most importantly, Greece. Draghi's opening statements were pretty boilerplate stuff — he reiterated that there was been a clear improvement in the eurozone's economy, but that growth remains modest. On Greece, Draghi is insisting that the ECB's liquidity assistance (the emergency funding keeping the banking system propped up) will continue so long as the banks are judged to be solvent. But he added that the government could not increase Greece's ceiling for market borrowing unless there is a "credible prospect of an agreement and a disbursement" (of bailout money). He went on to say that Greece's future is a political decision, not one for central bankers. Most importantly, he became the latest in a long line of European policymakers to say that the ball is in Greece's court. Here's the section: We need a strong and comprehensive agreement with Greece, and we need this very soon. By strong and comprehensive I mean an agreement that produces growth, that has social fairness, but that is also fiscally sustainable, ensures competitiveness, and addresses the remaining sources of financial instability. I can assure you that the ECB is doing all it can to facilitate a successful outcome. Such a strong and credible agreement with Greece is needed, not only in the interest of Greece, but also of the euro area as a whole. While all actors will now need to go the extra mile, the ball lies squarely in the camp of the Greek government to take the necessary steps. We'll keep this post updated as questions come, and Draghi tells us more.Join the conversation about this story » NOW WATCH: 'The Little Prince' trailer looks better than anything Pixar has made in years


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