ECB bond intervention set to spur debate / ECB and G7 signal readiness to intervene

Feature cover developments in the eurozone debt crisis over the weekend of 6-7 August 2011.

The decision by the European Central Bank over the weekend to intervene in the bond markets to buy Italian and Spanish debt was likely to prove hugely controversial – both inside and outside the bank.

The ECB said: 'The Governing Council of the European Central Bank (ECB) welcomes the announcements made by the governments of Italy and Spain concerning new measures and reforms in the areas of fiscal and structural policies. The Governing Council considers a decisive and swift implementation by both governments as essential in order to substantially enhance the competitiveness and flexibility of their economies, and to rapidly reduce public deficits'.

EUObserver, 8.8.11: EU speeds up anti-crisis measures after US downgrade http://euobserver.com/9/32689

EurActiv, 8.8.11: Euro zone parliaments cut short holidays http://www.euractiv.com/en/euro-finance/euro-zone-parliaments-cut-short-holidays-news-506924

EurActiv, 8.8.11: Eyes turn to ECB to defuse market tensions http://www.euractiv.com/en/euro-finance/eyes-turn-ecb-defuse-market-tensions-news-506926

European Commission: Speech/11/540: Olli Rehn: Ongoing developments in the eurozone http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/11/540&format=HTML&aged=0&language=EN&guiLanguage=en

ESO: Background information: ECB resumes bond-buying scheme http://www.europeansources.info/record/ecb-resumes-bond-buying-scheme/

ESO: Background information: Italy agrees to liberalise economy http://www.europeansources.info/record/italy-agrees-to-liberalise-economy/

BBC News, 8.8.11: ECB 'to act' over eurozone debt crisis http://www.bbc.co.uk/news/business-14439224

ECB: Press Release, 7.8.11: Statement by the President of the ECB http://www.ecb.int/press/pr/date/2011/html/pr110807.en.html

Deutsche Welle, 8.8.11: Asian stock markets sink after collapse in investor confidence http://www.dw-world.de/dw/article/0,,15301667,00.html

France24, 8.8.11: ECB ready to buy more eurozone sovereign debt http://www.france24.com/en/20110808-ecb-ease-debt-crisis-buying-eu-bonds-italy-spain-european-central-bank

The Guardian, 8.8.11: Are there any leaders out there? (via PressEurop) http://www.presseurop.eu/en/content/article/843171-are-there-any-leaders-out-there

Respekt, 8.8.11: Time to shoulder the euro (via PressEurop) http://www.presseurop.eu/en/content/article/844131-time-shoulder-euro

Der Spiegel, 8.8.11: Who will rescue the rescuers? (via PressEurop) http://www.presseurop.eu/en/content/news-brief-cover/843311-who-will-rescue-rescuers

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