Ifo attacks ECB on bonds

The head of a leading German think tank has attacked the purchase by the ECB which got under way yesterday of corporate bonds, saying the quantitative easing measures designed to boost the eurozone economy and which involve buying debt directly from big companies was “dangerous”.

Ifo president Clemens Fuest said that the ECB was now “starting to behave like a commercial bank” even though it did not have the skills to assess the risks.

“There is a danger that ailing companies will pass their risks onto the ECB.