ECB will most likely adopt government bond purchasing program this week

cep expert Van Roosebeke: Whether the ECB will activate the program right away remains unclear

ECB head Draghi faces a difficult decision

The European Central Bank will at its Governing Council meeting this Thursday most likely adopt a program for buying up government bonds on the secondary market, cep financial market expert Bert Van Roosebeke told Germany’s national broadcaster Deutschlandfunk in an interview. “Whether they will activate it remains unclear, but we simply expect a signal, that the ECB is ready to do this,” Van Roosebeke explained. The ECB hopes that the program will jump-start the economy and boost demand for loans. The former chief economist of the ECB, Juergen Stark, in an interview with Swiss daily Neue Zuercher Zeitung recently warned against such a bond buying program. “There is no reason for artificially blowing up the balance of the Eurosystem by using dubious measures which will lead to a further distortion of markets,” said Stark, who is also a member of the cep board.