The last several years have been expensive for the Eurozone. Since March 2015, the ECB has acquired government bonds with a total value of around 2.4 trillion euros. Now they're planning on ending the bond purchases.
The ECB's purchase of government bonds was an attempt to save countries such as Greece, Spain and Portugal from default. It was particularly controversial in Germany, where multiple lawsuits challenged its legality.
We don’t know if the rumors that Italy's PM checks Italian-German bond yield spreads several times a day are true. But as the ECB ends stimulus and Rome refuses to budge on its budget, he might want to start.
The European Central Bank looks has removed a key pillar of its support for the euro area economies. At their final policy meeting this year, ECB governors announced the end of their bond-buying program.
There's every indication that the ECB will announce a reduction in the scale of its monthly purchases of government bonds when it meets this Thursday. In truth, it has little choice in the matter.
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