30 Jul 2012

ECB predicted to resume buying Spanish bonds

2:06 pm on 30 July 2012

Speculation is increasing that the European Central Bank will intervene to ease the financial plight of Spain, with the approval of Germany.

German Chancellor Angela Merkel and Italian Prime Minister Mario Monti have issued a joint statement pledging to do everything necessary to protect the euro zone.

They echo remarks from French President Francois Hollande and European Central Bank President Mario Draghi, the BBC reports.

It has increased speculation that the European Central Bank could resume its programme of buying up Spanish bonds.

The remarks came the day before a visit from US Treasury Secretary Timothy Geithner.

On Monday, he will be meeting German Finance Minister Wolfgang Schaeuble before flying to Frankfurt to meet Mario Draghi.