• Progress made by Greek government
• Constancio meant to say governments know what the conditions for aid are, not that he expects Spain to apply for aid
• ESM program necessary but not sufficient for OM (bond buying)T. ECB will make independent assessment
• OMT threat more effective than lowering short-term policy rates; spreads are 200-250 bp tighter since announcement
• ECB does not have a preference in how EU Council decides Single Supervisory Mechanism mandate
• Irish budget a reaffirmation of Irish government restoring sound fiscal and structural conditions
• OMT conditions are clear, straight forward; there will be no talks on interest rate spreads with governments
• Main aim of OMT would be to remove tail risk, overcome fragmentation of the euro zone
• OMT size would be adequate to achieve objectives
• There was a breach of trust between sound fiscal states and unsound; must rebuild trust
• Euro bonds unrealistic; becomes realistic once trust is reestablished between countries