EU tensions set to increase as ECB starts buying up government bonds

ECB president Mario Draghi has indicated the bank could buy up government bonds with short-term maturity, giving the bank a new rescue role in the euro crisis.

The comments have led to expectations the ECB will begin buying up bonds following Thursday’s ECB governing council meeting, a move that is likely to fuel growing tensions between member states over the future of economic and monetary union.

Mr Draghi’s intentions, leaked from an in-camera meeting with members of the European Parliament’s Econ committee in Brussels yesterday, had a positive effect on bond markets.