ECB's shift of gears presents another set of risks

Ending the bank's QE programme risks fuelling public discontent within member states, driving up voters’ support for political extremes

ECB president Mario Draghi speaking to reporters in Latvia. Pic: Getty

“No battle was ever won according to plan, but no battle was ever won without one,” remarked Dwight D Eisenhower. With boththe US Federal Reserve and ECB policy decisions this week, the last two days have seen a re-appraisal of the markets' expectations regarding the future dynamics of monetary policies in the world’s two largest advanced economies.

The fact that these re-appraisals come on foot of spiking geopolitical, economic and financial risks gives ...