The European Central Bank (ECB) will pump a billion euros into European banks so that they can provide loans to small- and mid-size businesses. This is the same amount of money that the ECB loaned in 2011 and nearly equal to Spain's GDP.
The strategy is good, but getting that money to the small companies so that the euro zone can benefit from economic growth depends on more than Draghi alone. The banks also have to be willing to grant loans and companies need to show some degree of solvency. This is a hard combo to find in the south of Europe where the loans are needed most. In the end, the amount that Draghi puts on the table matters less than the conditions he and the banks can provide to the companies who need the money.
