The European Central Bank (ECB) is ready to make purchases of sovereign bonds to support weaker eurozone economies, as it believes the markets are over-stating the risk of eurozone breakup.
ECB president Mario Draghi said a "severe malfunctioning" exists "in the price formation process in the bond markets of euro area countries", and that risk premia related to fears of a eurozone breakup were "unacceptable". "The euro is irreversible," he told a press conference today (August 2).
The exact form
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