It should have been a big throw by the ECB big brains to cope with the "euro crisis" on today's session. But ECB Pres. Draghi's final statement was nothing but a big ballon of hot air, really nothing what could have impressed the markets. And, the markets were unimpressed by this lukewarm release, indeed. Btw, Germany's S&P rating is still AAA.
Draghi :"The ECB is willing to undertake outright market operations of a size adequate to reach its objective, the ECB action will be worked out in the coming weeks."
Well, he wasn't obviously able to tell more in detail.
Very simple - Germany's government and the Bundesbank are playing hardball with the softliners of Portugal, Italy, France and Spain (PIFS).
Forget Greece! Who is still betting on this quasi-bankcrupt state? Only those who hope to win against the bank with a hand of 16 on Blackjack!
The "Federal German Eagles" with veto-power have hit the PIFS and ECB's Draghi (Italian) because of two reasons:
#1 Without concrete implementation of necessary austerity measures - no action by direct ECB intervention on Spanish or Italian bonds
Reason: The Dutch, German and Austrian governments tear their butts apart in getting inflation down, national budgets balanced and long term deficits to sustainable levels; the other softliners want breathing space and deficit spending without doing the necessary adjustments against their imbalances. They just demand solidarity without any controls.
Cannot work, fellas!
#2 The pending decision of the German "Supreme Court" - the Federal Constitutional Court ("FCC") - in Karlsruhe about the constitutionality of the ESM - Fiscal Pact bill which was not signed in law by Germany's Federal President Joachim Gauck on prior request of the highest court.
Reason: On September 15th, the "FCC" will decide on an injunction by a preliminary summarized analysis of the bill, guideline is the Basic Law requirements which can only be interpreted by the eight justices who are handling the case for an injunction and final decision later.
The ECB will have to acknowledge this legal procedure. It could only get worse if a "shoot first - ask later" approach were hammered out right now - but later cancelled by a legal injunction that would Germany exclude from making contributions to the ESM.
The "Eagles" put their feet on the brakes, for sure - they know how shaky this "ESM" is on judicial ground, they didn't dare moving forward toward embarassing the highest German court. Pres. Gauck could have been convinced by extensive talks with government and opposition to sign this fiscal pact in law.
Btw, it's quite naughty to expect support if you are not willing to take action on your own governmental faults and miscalcutations.
We know how hot-blooded southern Europeans are. Shouting as loud as you can on the streets, burning German flags, painting swastikas on walls of German embassies, consulates or other German cultural / economic facilities, as seen in Greece, are misguided bullying or mob-"democracy" reactions.
The northern Europeans, quite cool-blooded mostly, should be painless toward insults and intimidation.
Even in soccer, the FIFA/UEFA appointed referees quickly find out what is real foul-play, or what is just pretending of being hurt by an alleged foul-play. The Portuguese, Spanish, Italian soccer-players are world-champions in acting this way. I always laugh when they get up quickly due to "miracle healing".