"Once a central bank becomes involved in fiscal policy, it eventually loses its independence and its credibility as an inflation-fighter. This is the story told not only by economic theory but also by historical experience," he said.
The ECB is legally independent and forbidden by the European Union treaty from lending money directly to governments. The reason for that is to prevent governments from pressuring it to use its power to print money to solve their financial problems.
Draghi has stressed that helping governments borrow was not the reason for the loans.
Draghi has also downplayed fears expressed by some economists that the loans will stoke inflation by increasing the supply of money in the economy. The loans only increase the money supply however when banks loan the money out and businesses decide to borrow — activity that remains subdued.