ROME Dec 5 A decision to boost the euro
zone bailout fund, combined with Italy's austerity package and
IMF action, should convince the European Central Bank to take
more action, Prime Minister Mario Monti said on Monday.
European politicians have been hoping that the ECB will
agree to step up purchases of sovereign bonds to hold down
borrowing costs in Italy and other vulnerable nations if there
were clearer signs of binding budget action from euro zone
ECB President Mario Draghi hinted last week that the central
bank might consider some kind of action if policymakers agreed
on a "fiscal compact" for the single currency area.
Monti said European leaders meeting in Brussels on Thursday
and Friday would provide decisive guidelines on the ingredients
needed to calm the crisis.
He said better budget enforcement, an increase in firepower
for the European Financial Stability Facility and involvement of
the International Monetary Fund would persuade the ECB to move.
"I believe this combination of these factors, including what
Italy, my government, did on Sunday, will induce the ECB to
re-assess, in full independence, their future policies."