ECB move risks major political consequences

THERE is a large risk of political fallout in Europe, say experts who expressed concern following the European Central Bank’s (ECB) decision to buy Italian and Spanish bonds.

The significant bond buying move is a step closer towards a fiscal union and was called the only practical result of a frantic weekend. The move forced down Italian and Spanish borrowing costs in an initial reaction.

Royal Bank of Scotland estimates that bond buying may eventually hit €850 billion.