Hard-line ECB washes hands of jobless crisis, sees no 'Japanese' deflation

The European Central Bank has refused to take any further measures to lift the eurozone out of recession and curb rising unemployment, counting on spontaneous recovery later this year to do the job.

Mario Draghi, the ECB’s president, said the wild moves in currencies and global stock markets over the past two weeks do not change the fundamental picture, though the bank has downgraded its economic forecasts and expects a deeper contraction of 0.6pc this year. “It is not enough to justify immediate action,” he said.

alanwgt: They are not going to do anything because they have not got a clue as what to do.

HarveyMarmite: The eu is going to end in the most bloody awful blood bath. The British nation will be sucked into another continent wide armageddon. Get out now before it is finally too late. It needs to be done now.

mrgombean: surely no one expects the current treacherous  political slugs in Europe to confront the reality of the urodisasterzone afterall they were the architechs of this monster

zeehan: I do honestly think they are waiting for a miracle along the lines of the second coming of Christ to happen… and soonish.

Christopher Hudson: the northern states are happy they raised their drawbridges long ago so much for EU-wide solidarity

JaneDoeNL:  The only people who spoke of EU-wide solidarity were the politicians. Indeed, many of them no doubt university educated, speaking a couple of languages, having fine salaries, even finer expense accounts, little accountability, golden handshakes and old boys' jobs, meeting every so often in some luxury resort or another to discuss how to deal with the plebs while quaffing 200 euro bottles of wine, will have a great deal in common. The citizens of Europe, unfortunately, were never consulted as to how they felt about these pledges of solidarity, and to the extent they were (Dutch, French, Irish referendums) were told to p-off. The political leaders of Europe are now starting to realise that their mouths were writing cheques they can't cash.

michaelindeutschland: have you noticed nobody in the EU heirarchy speaks anymore of european solidarity ? those who practice evil cannot control it, and soon they will begin to reproach and attack each other, Hollande having made a foray already their plan was that the serfs would reproach and attack each other. leaving more place, riches and resources for the elitist malthusians. but who will supply their Ivory towers and subterranean cities with food and water ? start stocking up on tinned food http://www.oftwominds.com/blogmay12/EU-neocolonial5-12.html…

leonb_09: The EZ countries have shown solidarity! Struggling EZ countries were bailed out with ECB money or, in other words, the money of the entire EZ population.  What else? The EZ has saved the City of London. It would be naive to think that the domino effect would have stopped after the fall of the last EZ country. The UK should thank her (EU) lucky star. 

keithfromashford: Who said Central Bankers don't have a sense of humour? "The European Central Bank has refused to take any further measures to lift the eurozone out of recession and curb rising unemployment, counting on spontaneous recovery later this year to do the job." That is the funniest thing I have heard in ages.

petethai:   Yes, and they also believe in the tooth fairy and father christmas.

robertbrowne: I would not be surprised if what they get is spontaneous combustion of some of the Eurozone's non peripheral economies such as France, Spain, Italy. Ignoring the perils of social unrest is madness, in Turkey it kicked off over cutting down a few trees in an old park in truth anything can provide the spark when their is simmering dissension.  They think that youth unemployment can be left to fester and fester, that they will do nothing. Youth has its energy it will also have its say one way or the other way. It is galling that the leaders of the EZ are nonsensical little pretentious men in designer glasses who think they can dismiss a generation of unemployed. 

iriejohn: "… spontaneous recovery later this year…" The frightening thing is that they're serious.

bugalugs2: "Mr Draghi said yesterday that the OMT had been the “most successful monetary policy in recent times”, citing […] a reversal of capital flight from southern Europe. German exposure to crisis countries through the ECB’s internal Target2 payments system has fallen by €160bn. " That's not a f***ing success, that's a sign that German investors  are already fleeing from the southern european economies and repatriating their capital.  Success would be if German investors were willing to increase exposure to southern european economies! Unless of course the whole point of what they did was not to save those southern european economies but only to buy time for Germans to withdraw their money before letting them collapse altogether…

michaelindeutschland: the data is on zero hedge, the Cyprus dispossession was delayed so the core Euro zone banks could get their money from time deposits repatriated, and then Merkel pulled the plug…

murraybigal01: The ECB's mere existence is down to the creation of the Euro. So for years they raid the Euro until there is nothing left to raid, then they plunge the Eurozone into the most chaotic mishmash seen in banking since the collapse of the south sea bubble 500 years years ago, and then finally when it is clear the animal is really, really dead, they finally say:  "let's suck it and see what happens" To papraphrase one late, great leader, "never in the history of economics have so many worked so hard to achieve so little…" PATHETIC

leonb_09: The single currency is too big to fail and remains extremely popular to the EZ citizens.  Time is tough and millions of people are suffering. But the situation is not any different in the UK or the US.  Once the crisis is over (in 5 to 10 years), the EZ will have become lean and mean. Watch out!

JaneDoeNL:  Why do people who clearly do not know this for a fact keep on insisting on claiming that the euro "remains extremely popular to the EZ citizens". Pray tell which EZ citizens you are referring to, I believe that the Finnish, Dutch and German citizens are becoming more and more disenchanted with the whole concept by the day. In Portugal, Spain and Greece an increasing number of citizens are seeing through the lies of their political leaders and media and observing the reality of what the euro means, rather than the lies of the supposed blessings it bestows upon those states. Unless, of course, one deems "blessings" to be synonymous with "debts". I would not say at this point that every citizen of the EZ hates the euro beyond all measure, but to say it remains extremely popular is preposterous and offensive. By all means, speak for yourself if you think it is so wonderful, but do not presume to speak for the millions of citizens who are being forced to pay for this gamble without ever being consulted on whether they wish to continue with the gamble. Or whether they wish to live through a decade or more of "crisis" while the people who orchestrated this monstrosity continue living the high life and not suffering one jot. Nothing is too big too fail. The last time Europe decided on an appeasement policy rather than tackle a difficult problem, it ended in WWII. Be nice if at some point someone would look at history and see the future.

leonb_09: The UK elites have sneered at the EZ in much the same way as they were sneering at the Americans before WWI.  Unfortunately, the joke is on them ONCE AGAIN. The EZ remains as one and is reforming.  In less than a century, the UK has moved from global superpower to regional power to a regional pygmy while its European neighbours are morphing into a world superpower.  Time to get off our high horse!…

Petra Thompson:  "has moved from global superpower to regional power to a regional pygmy" That was the choice Britain made to defeat the Nazis.  Considering that plenty of Nazis/Fascists went on to form the EU, we shouldn't have bothered.

robnorthlondon : None of the euro zone countries have ever known or practsied free trade, as defined by allowing zero government interference in trade, between its peoples and any others equally free round the world.  It is outside their historical experience or imagination and so the concept of belonging to a 'trading block' which they misunderstand and certainly dont practise as a supposed 'free trade zone' appeals to them all.  Whereas real free trade has no limits across the globe they are mostly operating in various degrees of protectionism worse than that of the UK or Germany and their economic freedom index is much worse as a result. Compounded by their top down legal systems similar to the corpus juris legal system that the EU wants to foist on us in Britain together with all the mini-monopolies and widespread vested interests that prevent a country say like Italy from liberalising and liberating its economy, and others are very similar, there is little chance of the EZ becming lean and mean ever again. In fact the ECB definition of lean and mean would only ever be achieved if everyone in the EU/ EZ were paid no more than their equivalents in China or India.  That is its purpose. 

efrustrated: Leonb.  Go peddle that mantra on another comments board please, Telegraph readers are a little better informed than to swallow that. Perhaps there's a publication for 10 year old up-comng Euro citizens which might welcome you. There wouldn't have been such a crisis in the first place if it hadn't been  for the noddy euro currency.

leonb_09: efrustrated,  Avoid health problem; Make peace with reality.

greggf: The Euro is the DM in disguise - as a clone murray. Everyone wanted to have the DM clone as its currency and rushed to sign up - even cooking the books to get on board. It was seen as the ultimate emblem of economic success and expected to transform sleepy, quasi-corrupt, inflation-prone  and flabby finances overnight. (Even Britain shadowed it for a time under Nigel Lawson.) It did in Germany, Holland, Finland, Austria and one or two other nations as the EU statistics show. And Brussels smugly rode on the back of this success.   But growth stopped almost everywhere in 2007/8, and the Depression, which had already begun in Japan two decades earlier, spread to the weaker members first, uncovering all the malfeasance, all the book-cooking and political short-cuts in which Brussels was entirely complicit. Further it exposed these smaller economies to repaying back hefty debts in the hard DM clone! And the Depression has hardly started yet, worse - much worse - is to come…!

murraybigal01: Yeah I do realise that the Euro is really the DM. Which is why I don't expect anything major to happen this side of the German elections in a couple of months time…

greggf: "Yeah I do realise that the Euro is really the DM." I'm sure you do murray. But the Euro is more, it's a messenger - it's the boy who said the Emperor's got no clothes,  which presages doom for the Bruxellois architects, their courtiers and acolytes…including the faux politicians in Westminster.