REVEALED: Desperate EU Bosses Splurge €1TRILLION on Bonds to Prop Up Ailing Eurozone
- REVEALED: Desperate EU Bosses Splurge €1TRILLION on Bonds to Prop Up Ailing Eurozone
by ALIX CULBERTSON, http://www.express.co.uk/
THE European Central Bank (ECB) has splurged almost €1trillion on bonds in the last 18 months in a desperate bid to prop up the ailing eurozone.
Shocking new figures show ECB bosses have spent £822billion (€958bn) buying up bonds since March 2015, hoping to lower borrowing costs and spark growth. They are acquiring government and corporate bonds worth £15.3bn (€17.8bn) every week, with the scheme set to end next March. The astonishing number of bonds being purchased every seven days means each one of Germany’s 80m-strong population could have four bottles of Veuve Clicquot champagne – worth £188 – a week. The majority of the ECB’s corporate bonds – 32 per cent – have been bought from France, while 25 per cent have come from Germany and 13 per cent from Italy.
Six per cent come from the Netherlands and five per cent from Belgium, while 19 per cent have been bought from a combination of countries.
While some of the bonds are strong investments, the ECB is gambling with European Union (EU) cash by purchasing bonds deemed risky. Bonds bought from Lanxess, RWE, Metro and K+S have all been marked as BBB- by financial rating agency Standard and Poor’s. The ECB has promised to reach a two per cent level of inflation by March next year, but with inflation at 0.2 per cent this month, the end goal is looking unlikely.
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