Merkel backs ECB’s Draghi

The world’s financial market have been given a boost by apparent support from German Chancellor Angela Merkel for European Central Bank intervention to calm the eurozone’s debt troubles.

Speaking during a visit to Canada, Merkel backed ECB President Mario Draghi’s conditional plans to buy the bonds of troubled eurozone governments:

“What Mr Draghi said is something that we’ve repeated time and again since the beginning of the Greek difficulties more than two years ago. We feel committed to do everything we can to maintain the common currency.”

Draghi was strongly criticised in Germany for vowing in a speech in London last month to do whatever it takes to save the euro, and raising the prospect of buying bonds.

But Merkel said his declarations were “completely in line” with the approach taken by European leaders.

Merkel has resisted pressure to introduce common eurozone bonds as a solution to the bloc’s debt crisis. Instead she wants a so-called “fiscal union” which would give Brussels much more control over states’ budgets.

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