Eurozone leaders support expected purchase of bonds

EU leaders appeared to be lining up behind the ECB’s expected purchase of government bonds, with even German chancellor Angela Merkel not opposed.

Markets were already reacting positively to the leaked comments by ECB president Mario Draghi that short-term purchases of up to three years would not be contrary to the EU rules against monetary funding.

Whether tomorrow’s ECB meeting will meet the expectations of the market and eurozone leaders was doubted by analysts, who warned it could in fact reverse yesterday’s easing of Spanish bonds in particular.