Draghi can now focus on deflation fight amid lull in Greek talks

Frankfurt

A RESPITE in Greece's bailout talks allows Mario Draghi to return his attention to the region's dismal price outlook.

Reform proposals by the Greek government, which the European Central Bank president described as a "valid starting point", have freed the ECB from immediate concern over funding the country's banks. That will give the institution scope to elaborate on the details of a 1.1 trillion-euro (S$1.69 billion) quantitative-easing programme designed to stave off deflation.

Mr Draghi, who will attend the European Parliament in Brussels on Wednesday, is about to get data from Germany, Spain and Italy that will show a continued slump in consu…