Alfredo Saenz is exactly right that the ECB needs to get in front of the issue and buy Spanish debt as yields climb. As stated before this won’t solve the structural problems but neither will delaying the issue. Policymakers have continuously waited for the market to force them to make a move instead of taking the initiative. By being in front of the curve the economies of the European periphery nations can keep making the changes needed to improve their fiscal condition, without fighting the panic and recession that is apt to come when bond yields are rising drastically. If a country stops making the moves that they need to make as the Spanish prime minister implied a few weeks ago, than the ECB should let them know that their relief help is contingent on their continual progress.
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