Mario Draghi is in a very unenviable position. He is responsible for the integrity of the euro, but he can only influence monetary policy and affect liquidity. The other problem in the peripheral eurozone economies is that of solvency.
Gobs of cheap money have lessened a liquidity crisis caused by money being withdrawn from periphery because these states do not have the economic power to maintain their budgets. The fact remains that they are still heading towards insolvency, and there is nothing that Mr. Draghi can do about this. National governments must reform their economies and budgets if they are to back away from the cliff of insolvency.
Under this context, Draghi has little choice but to back whatever the paymasters of Europe want. A national budget portends a great loss of sovereignty, which is a political nonstarter in virtually every member of the eurozone. The only thing worse than a budget tsar to these countries is a budget tsar following German rules.
The truth is the periphery is too poor to protest and will have to march to a Teutonic drumbeat if it wants German money. The question is will the electorate put up with this humiliation.