The European Central Bank (ECB) continued its existing bond-buying strategy throughout the week, and on Friday, Ewald Nowotny, an ECB governing council member, said it had so far purchased 67 billion euros’ worth. “And we have also this week employed [the strategy] energetically,” he said in a Reuters report.
The ongoing purchases seemed to stabilize markets on Friday, bringing down risk premiums. On Thursday the ECB had bought a number of smaller packages of bonds from Ireland and Portugal, according to Reuters, leading to a decrease in rates on all peripheral European Union countries’ bonds against the Bund.
Jean-Claude Trichet, president of the ECB, said that there was no crisis of the euro, but at the European American Press Club in Paris, he said, “It is extremely important that what is being done by governments, whether it is their national fiscal policies or structural reform policy, whether it is the collegial collective action that we might have including through the stabilization fund (…) is commensurate to the dimension of the challenges.”