“Markets perceive OMT as a credible backstop with the potential to remove prevailing tail risks,” Asmussen said at a press conference following the informal ECOFIN meeting in Nicosia, Cyprus.
Market reaction to the OMT, by ECB “has been positive. This is obviously welcome, but it should be no reason for complacency,” Asmussen said. “There is no time to rest. It’s up first and foremost to governments to do their homework.”
Asmussen said the ECB believes “the financial market situation remains fragile despite some recent improvement, and the economic growth remains weak” in the Eurozone. Growth is likely to be slightly negative this year and price pressures should therefore “remain contained.”
As for Ireland pledge, Asmussen said the country’s program remained “well on track, and Troika remained involved in “intense discussions” on finding possible ways to improve Ireland’s loan program”, but the reforms in thir financial sector should be completed.