Economics

ECB Signals No Return to Crisis That Almost Split Euro Zone

  • Pandemic emergency purchase program should curb bond yields
  • Risks still remain in speed and execution of action plans
Photographer: Alex Kraus/Bloomberg
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The European Central Bank can’t stop the euro-area from sliding into recession but it may be able to prevent another devastating debt crisis that threatens the bloc’s survival.

The ECB’s 750 billion-euro ($800 billion) bond-buying plan -- equivalent to about 6% of euro-area GDP -- will make it easier for governments to embark on a spending binge to fight the coronavirus pandemic.