European Central Bank pushes controversial program to buy troubled nations’ bonds

Mario Draghi, president of the European Central Bank (ECB), recently outlined a proposal that would see his organization engage in purchases of troubled European Monetary Union (EMU) member governments’ bonds.

Draghi portrayed this program as an “effective backstop” that would allow the ECB to address “distortions” in international bond markets and avoid severe price stability issues.

However, countries would still need to request aid in order to receive it and participation in the bond purchasing program would come with strict conditions. Any government that requires extraordinary aid – in the form of bond purchases by the ECB – would be required to make certain domestic policy commitments, including sharply limited spending.

Global events can prove extremely disruptive for a business – even one that is not immediately connected to the troubled area or industry. Earlier this year, this blog reported on how the ongoing European financial crisis has had a widespread effect on many U.S. businesses.

As Europe’s economic problems continue to grind on, the remedial actions undertaken by regional governments and EU institutions will undoubtedly have critical implications for various markets. The exact effect these events will have on different U.S. and international corporations is difficult to quantify, given that each organization has its own long term plans to consider.

Companies can benefit from working with a financial project consulting service to determine the extent to which they will be able to capitalize on or will be required to account for the impact of measures such as the ECB bond-buying program.

Alternatively, a business may find that it is necessary to bolster their long-term analytical capabilities by conducting a financial professional search. Recruitment firms can help companies assess their needs and select the right candidate to guide their financial decision-making going forward.