German Chancellor Angela Merkel and Italian Premier Mario Monti "agreed that Germany and Italy will do everything to protect the eurozone" in a phone conversation Saturday, German government spokesman Georg Streiter said, a statement that was echoed by Monti's office.
Though they didn't pledge any specific action, the comments raised expectations that the ECB might step in to buy Spanish and perhaps Italian government bonds to lower the countries' borrowing costs, which have been worryingly high in recent weeks.
Countries that pledge to implement reforms demanded by the EU's executive Commission also would be able to tap rescue funds without having to go through the kind of tough austerity measures demanded of Greece, Portugal and Ireland, which have had to get international bailout packages.
[...] I must say that we have arrived at a decisive point ... the euro countries have arrived a point where we must make extremely clear with all available means that we are determined to ensure the financial stability of the currency union.
International debt inspectors are scrutinizing Greece's finances and its progress in implementing unpopular budget cuts and reforms demanded in exchange for the rescue loan program that is keeping the country afloat.
Though they didn't pledge any specific action, the comments raised expectations that the ECB might step in to buy Spanish and perhaps Italian government bonds to lower the countries' borrowing costs, which have been worryingly high in recent weeks.
Countries that pledge to implement reforms demanded by the EU's executive Commission also would be able to tap rescue funds without having to go through the kind of tough austerity measures demanded of Greece, Portugal and Ireland, which have had to get international bailout packages.
[...] I must say that we have arrived at a decisive point ... the euro countries have arrived a point where we must make extremely clear with all available means that we are determined to ensure the financial stability of the currency union.
International debt inspectors are scrutinizing Greece's finances and its progress in implementing unpopular budget cuts and reforms demanded in exchange for the rescue loan program that is keeping the country afloat.
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