ECB ready to buy bonds of troubled eurozone governments, says Draghi

THE EUROPEAN Central Bank’s incoming president signalled yesterday that the bank stood ready to carry on buying the bonds of troubled eurozone governments, suggesting he is ready to intervene to steady markets in the face of German misgivings.

Mario Draghi also said the 17-nation euro area faces significant growth risks, a comment that hints he may be ready to support a cut in interest rates soon after he takes over from Jean-Claude Trichet next week.

The Italian made the comments as European leaders headed to Brussels for a crunch summit aimed at getting a firm grip on the eurozone debt crisis, with France and Germany at odds over how much the ECB should be involved.