28 Jul 2012

ECB promises to try anything to save euro

7:45 pm on 28 July 2012

The European Central Bank is vowing to do whatever it takes to keep the euro intact, and its president says it will be enough.

Speaking at a conference in London, Mario Draghi told his audience there are no taboos over what the ECB can and cannot do.

Analysts think it may restart its securities markets programme, which allows it to buy large quantities of government bonds from banks and other financial institutions on the open market.

That in turn allows indebted eurozone governments to borrow money at rates much lower than those offered in the commercial bond markets.

Berenberg Bank chief economist Christian Schultz says the ECB's previous reluctance to buy bonds had been prompted by rising fears that Spain will require a full bailout.

He says European economies are back in a situation of contagion.