ECB set to buy Italian and Spanish bonds to halt crisis

THE European Central Bank (ECB) is set to “intervene very significantly on the markets” in an attempt to stall the eurozone’s financial crisis by buying up Italian and Spanish national bonds.

ECB president Jean-Claude Trichet has confirmed the 17 nation member-group will make the move this morning through its securities markets programme (SMP).

The plan, which has also been confirmed by Italy’s federalism reforms minister, Umberto Rossi, came after an emergency ECB conference to address the ongoing eurozone crisis — which has been exacerbated by recent US financial turmoil.