The European Central Bank will decide early next year whether to take further action to revive the eurozone’s economy, its president said yesterday, signalling that he would not allow opposition from Germany or anyone else to stop it.

In his clearest language yet, Mario Draghi underlined the central bank’s commitment to supporting the ailing economy of the 18-country bloc, and argued the case for printing fresh money to buy assets such as state bonds.

But his remarks, which came within minutes of a meeting where he clashed with German officials over his ambitions, set him on a possible collision course with the eurozone’s biggest and single most important country.

Draghi’s remarks set him on possible collision course with Germany

Painting a gloomy picture of the euro bloc’s prospects, Draghi announced that the ECB expected economic output to be lower in the coming years than it had predicted three months ago, while a slump in the price of oil would further weaken inflation. Very low inflation is seen as a trigger for ECB action such as printing fresh money to buy government bonds, a step known as quantitative easing (QE) which Germany opposes.

“QE has been shown to be effective in the United States and UK,” Draghi told journalists at a press conference, saying that he would not ‘tolerate’ the prospect of price stability, the ECB’s central goal, drifting off course.

Perhaps most significantly, however, Draghi made clear that he would face down the considerable political opposition to further radical action.

Last week, Sabine Lautenschlaeger, Germany’s appointee to the ECB’s Executive Board, said now was not the time for state bond buying. But Draghi said there was no need for all 18 countries to agree.

“Do we need to have unanimity to proceed on QE or can we have a majority? I think we don’t need unanimity,” he said, delivering a strong message to Germany.

German opposition nonetheless remains a serious obstacle.

Lautenschlaeger and Jens Weidmann, the head of Germany’s Bundesbank, opposed a decision yesterday to harden up Draghi’s goal of bolstering the ECB’s balance sheet of assets, such as credit to banks, central bank sources told Reuters.

The ECB has set itself a goal of expanding its balance sheet –buying assets from banks and others in return for cash it hopes will be pushed into the economy – by up to 800 billion or even one trillion euros.

Many in the market were frustrated that Draghi was not already able to go further.