OECD calls for unlimited bond buying by ECB
03 Sep 2012
The European Central Bank should launch an 'unlimited' bond buying programme as part of vital efforts to resolve the debt crisis according to the secretary-general of the Organistaion for Economic Coopertion and Development.
Angel Gurria's warning comes as Spanish leader Mariano Rajoy said he would consider asking for extra aid on top of the country's €100 billion bank bail-out but would wait to see what conditions any rescue package carried.
"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.
Under the plan, the ECB would buy up the short-term debt of stricken countries such as Spain and Italy. The plan has been slammed by the ECB and also by
Bundesbank chief Jens Weidmann, who reportedly even considered resigning over the issue last week.
However, Gurria strongly advocates the course of action.