Photo: AP/Michael Probst
French newspaper Le Monde reports that the European Central Bank is preparing to restart purchases of Italian and Spanish bonds, and that it is preparing “concerted action” with EU states.It also reports that German Chancellor Angela Merkel and French President Francois Hollande may discuss this plan today.
This is a potentially bombshell report, indicating not only that the ECB will make good on statements made yesterday by Mario Draghi, but that EU leaders are preparing to act simultaneously.
From the report (in French):
The European Central Bank (ECB) will not lead only the “great battle” to save the euro. She would prepare, according to our information, a concerted action with the states…
While it will take another few days or even weeks to finalise the device in question, the ECB would prepare an operation coordinated with the states may limit the surge in interest rates of Spain , but also the Italy .
The President of the ECB and key executives in the euro area have increased contacts in recent days. The negotiations were to continue in the day Friday. A telephone conversation between Francois Hollande and German Chancellor Angela Merkel , was, on this, not excluded in the afternoon.
European shares have rebounded from earlier losses on this headline.Interestingly, this report appears to refute earlier statements from the Bundesbank, which said the ECB would not purchase more sovereign bonds.