ECB’s decision on unlimited bond purchases hailed as ‘game changer’

The ECB decision to make unlimited purchases of three-year bonds for stressed eurozone member states is being hailed as a game changer, although it does not guarantee the euro will survive.

The markets have so far reacted favourably to ECB president Mario Draghi’s plans to save the euro, unveiled yesterday.

Southern member states have seen a huge erosion in competitiveness compared with Germany and other northern European countries over the past few years. Unless these imbalances are corrected, the debt crisis will persist.