OECD tells ECB: Launch ‘unlimited’ bond buying
The European Central Bank(ECB) should launch an “unlimited” bond buying programme to help stem the eurozone debt crisis, according to the secretary-general of the OECD.
Despite opposition to the plan from within the ECB and especially Germany, Angel Gurria was clear such a step should be taken, the Telegraph reports.
“If you have the ECB which can work in the markets in order to bring down maturities then why not?” he told a conference in Slovenia.
“The system is at stake, the euro should not be put at risk … the EFSF and the ESM [bail-out funds] are not enough, fast enough, reactive enough.”
Asked if the ECB should start unlimited bond buying, he said: “Yes, I believe they should, the sooner, the better.”
Angel Gurria’s warning came as Spanish leader Mariano Rajoy said he would consider asking for extra aid on top of the country’s €100bn (£79bn) bank bail-out, the Telegraph reports.
However, he would wait to see what conditions were attached to any rescue package: “If I believe it is good for Europe as a whole, for the euro, and for Spain, I will do it, and if not, not,” he told Spanish daily ABC.
This article was first published on Investment Week