Th ECB is faced with an issue of how to get the EU into better financial shape. You can look at the sovereign risk premia which have all come down and say that Europe is fine. You can look at the improve in the equity markets and also make the case things are fine, but the fundamentals of the banking system and the economy may call for more policy action which means more quantitative easing or alternative policy choices. The key issue is the lean loan growth and the strong Euro which has the potential to choke exports.
ECB president Draghi has been good at providing strong words concerning the direction of policy. His "do whatever it takes" speech of two years ago caused investors to take notice. He is currently signaling that more is likely to come from the ECB although he has not been as bold as two years ago. The Euro currency is a concern at 2 1/2 year highs. Low inflation and the potential deflation is also a real fear. We should expect a cut in rates with deposit rates going negative, but that may not be enough. The issue is how to go beyond the land of ZIRP (zero interest rate policy). As noted by Daghi, there may be a need for a "broad-based asset purchase program". That sound like a QE program to me. With EU money growth rate decelerating and suggesting potential for deflation, this seems likely.
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