Economics
ECB Spent Billions to Shield Italy Using First Line of Defense
- Figures show use of flexibility as initial crisis response
- Central bank published net purchase data for June and July
The Italian national flag flies near a monument to the unknown soldier in Rome.
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
European Central Bank officials appear to have deployed billions of euros in bond purchases to shield Italy and other southern euro members since activating their first line of defense a month ago to keep speculators at bay.
Data released on Tuesday points to a significant use of funds freed up by maturing debt in the portfolio of its pandemic program, suggesting the use of a tool crafted by policy makers as an initial response to any market turmoil.