Europe's dilemma: What are Draghi's options?

Europe's dilemma: What are Draghi's options?

ECB policy changes have already been priced into markets, but will Draghi's decisions be sufficient in staving off the threat of deflation in the eurozone? Hardeep Tawakley reports.

It was only in 2012 that a large question mark hung over the future of the European Union. It was dealing with a deep sovereign debt crisis. Several peripheral nations were nearing default, and a Greek exit from the eurozone seemed imminent. Then, in July 2012, European Central Bank president Mario Draghi changed the eurozone’s future with three words. He promised to do “whatever it takes” to protect the euro. A rally in government bond markets in peripheral Europe followed, with 10-year bond yields in Spain falling from 7.5% in mid-July to 6.8% after his speech. Europe’s slow, but si...