Economics
ECB Risks Italian Friction in QE Review of Euro Economies
- Central bank will update the key that underpins its QE program
- Financial impact likely to be small, but Italy still a loser
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Italian populists might soon have a new grievance to wield: tweaks to the European Central Bank’s stimulus settings could be about to penalize the nation for its poor economic growth.
The ECB will review its capital key, a measure of economic heft that determines how its 2.6 trillion-euro ($3 trillion) bond-buying program is divided among euro-zone nations. Bloomberg Economics calculates that the changes could mean purchases of Italian bonds drop by 750 million euros next year, with those of Germany climbing by 1 billion euros.