ECB buys €22bn in eurozone bonds

Article reported that the European Central Bank spent €22bn on government bonds in the week beginning 8 August 2011 – more than ever before – as it sought to prevent the eurozone debt crisis escalating out of control.

The larger-than-expected display of fire-power highlighted the scale of the challenge the central bank faced in keeping official borrowing costs under control for Italy and Spain, the eurozone’s third and fourth biggest economies. But the size of the intervention, revealed by the ECB on the 15 August 2011, raised fresh questions about how long its commitment to act would last.

France24, 15.8.11: Pressure on govts to deliver after ECB spending spree http://www.france24.com/en/20110815-ecb-spent-record-22-billion-euros-government-bonds-halt-crisis-italy-spain

El País, 15.8.11: European Central Bank bought 22 billion in euro-zone bonds http://www.elpais.com/articulo/english/European/Central/Bank/bought/22/billion/in/euro-zone/bonds/elpepueng/20110815elpeng_8/Ten

ESO: Background information: Germany and France rule out eurobonds http://www.europeansources.info/record/germany-and-france-rule-out-eurobonds/

EUObserver, 16.8.11: Eurozone bank buys record €22bn in bonds to contain euro crisis http://euobserver.com/19/113325

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