Economics
ECB Will Tweak Capital Key, Cutting Italy's Share in Bond-Buying
- Capital share will drop for 12 countries, rise for 16
- Changes will impact how ECB divides up bond purchases
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The European Central Bank will adjust the capital shares of national central banks next year, a step that will have implications for its bond-buying program and the amount of stimulus reaching the euro area’s weakest members.
The changes to the so-called capital key will reduce the shares of 12 countries including Italy, Spain and Greece, while boosting those of 16 others including Germany, France and Austria. The adjustment, which is made every five years or when a new member states joins the bloc, will come into effect on Jan. 1, according to an ECB’s statement on Monday.