ECB struggling to square euro circle

THE European Central Bank is thinking the unthinkable to save the euro, including resuming its bond-buying programme and possibly even pursuing quantitative easing — in effect printing money.

Bold action is probably at least five weeks away, though some clues may come when the ECB reveals its latest interest rate decision on Thursday.

Several other pieces have to fall into place before the ECB will act decisively. These include a request for assistance from Spain, which Madrid is still resisting, a decision by eurozone leaders to let their bailout fund buy bonds at auction, and a German court ruling on the legality of the euro zone’s permanent rescue fund, due on Sept 12.