ECB'S Coeure Defends Bank's Decision Against Large QE Program

The euro traded steadily at $1.2906 at 10:00 GMT on Thursday morning following European Central Bank Executive Board Member Benoit Coeure’s comments that the bank was obligated to do whatever it takes to get the bloc’s economy back on track.

The common currency has been under a lot of pressure recently as the region’s economy has been sputtering and geopolitical tension has threatened to further depress the eurozone’s income.

The Wall Street Journal reported that Coeure told a Spanish newspaper that the eurozone is in need of structural reforms that will keep another financial crisis from hitting while still stimulating the economy.

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The European Central Bank announced last week that it was planning to help encourage lending throughout the bloc by implementing an incentive program that will help spur on lending, but that it had no plans to begin a bond buying program like that seen in the U.S.

Coeure defended the bank’s unwillingness to begin a massive asset purchase program, saying that the ECB’s approach is more focused on restarting the flow of credit.

Meanwhile, a referendum vote in Scotland reignited a debate in Spain over whether or not Catalonia should become an independent state. On Thursday, the region is expected to hold a large protest calling for a referendum vote.

Unlike the situation in the UK, the Spanish government has said it will refuse to accept the results of a referendum as it would be unconstitutional. The region, which is responsible for about a quarter of the nation’s exports, is fed up with the country’s sky high unemployment figures and growing public debt.