Paul Krugman thinks that by doing nothing, ECB is destroying the euro and is trying to put itself out of business.

Oh, and survey data suggest that the euro area economy is really plunging now, plus Spain is on the brink. What about inflation? It’s falling fast — which is a bad thing under the circumstances.

I don’t think there’s any conceivable economic logic for the ECB’s decision. It can only, I think, be understood as some kind of refusal to admit, even implicitly, that past decisions were wrong.

Basically, ECB is telling politicians it is their job to improve the economy. President Draghi says that ECB will not fill the policy vacuum created by others.

“There is no sort of horse trading here,” he told a news conference.

“Some of these problems in the euro area have nothing to do with monetary policy … and I don’t think it would be right for monetary policy to fill other institutions’ lack of action.”

One wonders how ECB can reconcile this statement with its other statements that it is ready to act if conditions worsen, just not yet.

“A few members would have preferred to have a rate cut today,” said ECB president Mario Draghi.

ECB is also not considering using EFSF to help alleviate crisis, which to a large extent is due to sovereign debt.

Draghi said any decision to allow the European Financial Stability Facility lend directly to banks should be made by euro area political leaders.

He acknowledged that the move would allow banks to be recapitalized without driving up government debt.

Many experts believe that it will act next month – after June 17th election in Greece.

Literally, that may not be “horse trading” but it is trading some animal. Did I hear some one say “human” – in Greek and Spanish?