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FXstreet.com (Córdoba) - While many observers appear to believe that Draghi's proposals last week are game changers, especially now that the German government has endorsed them, BBH analysts are not as convinced. "On the contrary, the fact that the German government endorses those proposals should be a clear signal that it is most certainly not a game changer".

"Rather than ECB bond purchases, as under Trichet, conducted at the whim of the central bank, Draghi proposal limits the ECB's discretion considerably", they say. According to the BBH team, there are three conditions or limits: First, countries must formally request assistance. Second, that request must receive unanimous support (in some countries, such as Germany, this will require parliament, or some part thereof approval). Third, the country whose bonds are to be bought, must agree to a memorandum of understanding, which includes quarterly visits by the Troika.

"There are still sufficient checks for the creditors to ensure that the debtors are not given carte blanche", BBH adds.

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