Italian Foreign Minister Franco Frattini said the European Central Bank will continue to buy Italian and Spanish bonds to try to trim record borrowing costs.
“We’ll be insisting on the European Central Bank to continue,” Frattini told reporters today in Cernobbio, Italy. It’s a “very wise policy to support efforts of states like Italy and Spain. I exclude the ECB will stop buying” the bonds.
The Italian parliament’s “quick” approval of a government decree containing measures to balance the budget by 2013 “will reassure markets,” Frattini said. Italy’s Senate will probably approve the decree by the end of next week, followed by the lower house the following week, he said, adding that there is “no attempt” to scale back budget-cutting goals.
ECB President Jean-Claude Trichet said earlier today at the Cernobbio conference that the Italian government must “fully implement” the budget measures announced to restore the country’s creditworthiness. Frattini said a swift approval would be the best answer to the ECB’s concerns.