MORNING BID EUROPE-A daily note from our Economics/Politics Editor

* A daily view from EMEA Economics & Politics Editor Mike Peacock The views expressed are his own.

LONDON, Oct 2 (Reuters) - The European Central Bank has one of its two offsite policy meetings of the year, in Naples. After a glut of measures last time it's inconceivable that further action will be taken now, but there is plenty to ponder.

A first tranche of cheap four-year loans has been offered to banks in the hope they will lend it on, but the take-up was poor.

The ECB is playing up the prospects of a second round in December after bank stress tests are out of the way. But having pledged to add the best part of 1 trillion euros to its balance sheet to rev up the euro zone economy, there is a lot of ground to cover.

Draghi will flesh out the ECB's parallel plan to buy bundled-up loans - asset-backed securities - which has already been viewed with disquiet by Bundesbank chief Jens Weidmann.

That may be heightened by the realisation that if the ECB is to open the offer to banks across the euro zone, it may have to take in some rather dicey looking collateral from the likes of Greece and Cyprus.

A Reuters poll on Monday showed money market traders on average expect the ECB to buy a total of 200 billion euros of ABS and covered bonds over a year. Draghi has appealed to governments to support the plan by guaranteeing some riskier ABS tranches, but both France and Germany oppose that.

The ECB faces big political and philosophical hurdles to launching full quantitative easing. And there is now another reason to ponder whether it will take the ultimate step, which many in the markets assume is just a matter of time.

That reason is the euro, which has broken below its 2013 lows and is down almost 10 percent from the peak it hit against the dollar in May. With U.S. money printing about to end next month and speculation intensifying about the timing of a first interest rate rise from Washington, there are good reasons to think that this trend could continue.

If it does, it would push the prices of imports up while making it easier for euro zone countries to sell abroad, which should have an upward impact on both growth and inflation. The impact won't be immediate, though, as this week's inflation reading of just 0.3 percent demonstrated.

Draghi, on home turf, will doubtless reprise his call for euro zone governments to spend more or cut taxes in an effort to lift growth and inflation, while respecting the EU debt limits.

France produced its 2015 budget yesterday, which confirmed it will take until 2017 to get its budget deficit below three percent of GDP - the EU limit - years after it should have.

Italy said a third year of economic contraction would push back efforts to balance its structural budget. Italian Prime Minister Matteo Renzi meets Britain's David Cameron in London later.

Renzi and France's Francois Hollande are pressing for fiscal leeway in return for promised structural economic reforms and have the support of other euro zone members. The question is whether either can deliver the reforms.

Germany, as usual, is sceptical and is making great play of the fact that it will have no net new borrowing next year for the first time since 1969, even though its economy is barely growing.

France holds a bond auction, offering up to 8 billion euros of long-term paper, having said in its 2015 budget that it will have to issue a record 188 billion euros of bonds next year. Look at its ability to borrow for 10 years at just 1.275 percent and you would assume everything in the garden was rosy.

Spain, which has been upgrading its growth forecasts, will auction up to 3.5 billion euros of six- and 10-year bonds.

Jean-Claude Juncker's team of European Commissioners have faced confirmation hearings in the European Parliament this week and despite a great deal of public cordiality, behind the scenes it's been a different matter.

British Conservative Jonathan Hill, named to oversee the finance sector, has been summoned back for a new grilling after failing to answer some questions convincingly. The Greens and the left delayed Spaniard Miguel Arias Canete's securing the energy and climate brief, over past links with the oil industry, prompting a threat from his centre-right allies to block approval for French Socialist Pierre Moscovici at an economics committee hearing today.

Some have said putting the former French finance minister in charge of issues like budgetary discipline is like putting a fox in charge of the hen coop, given Paris's repeated inability to get its deficit down to the EU limit.

The European Parliament may want to claim at least one scalp on the list to demonstrate its potency. Moscovici probably won't be it, not least because he will be overseen by the fiscally hawkish Valdis Dombrovskis from Latvia.

World financial markets have woken up to the Ebola crisis now a sufferer has been found in the United States. Two days after he was sent home from a Dallas hospital, the man who is the first person to be diagnosed with Ebola in the U.S. was seen vomiting on the ground as he was bundled into an ambulance. (Editing by Larry King)