How Draghi Seeking QE Trade-Off May Find Austerity Trap

Mario Draghi has made European political leaders an offer: You scratch my back and I’ll scratch yours.

In turning up the rhetoric on his readiness to start quantitative easing, the European Central Bank president is also asking governments to open their own wallets. His message to European leaders preparing to gather in Brussels for a summit tomorrow is that it’s high time they boost domestic demand by using the “flexibility” built into their budget pact.