Why No ECB QE?

While fire in the Euro zone blasts investor confidence in the area, the question why the European Central Bank doesn't do the same thing as the U.S., Japan, and others to have qualitative easing, to be specific, buying government bonds makes sense. So what are the reasons ECB holding back?

ECB indeed has a fire hose --- buying constituent country bonds to put out borrowing costs in Greece, Italy, and Portugal. There are two main reasons why ECB doesn't want to or can't do that.

First, ECB considers itself is not the sovereign lender that can substitute government's fiscal responsibilities. Their mandate is preserve price stability. Their charter forbid them from using bank resources to finance governments. If there is a deflation, ECB would feel necessary to response. Now the Euro zone inflation is at 3%, higher than 2% ECB threshold. In other words, ECB concerns their integrity would be breached if they buy any bond purchasing. But ECB has consistently been expressing their intend to help if governments approve. That brings in the second reason.

ECB needs EU countries, especially Germany, approval to act. Without government's green light, they will violate the law doing so. Meetings go to the direction that governments have gradually come to understand they must come to consensus first then ECB will come to help readily. Reports say that Germany has realized this.

If ECB's QE action is approved, the market will turn around.