The European Central Bank (ECB) has signalled its intention to broaden its bond purchase programme to include Italian and Spanish paper in a bid to ease market tensions and stave off the threat of contagion.

In a statement released on Sunday, the ECB's Governing Council said it welcomed the new fiscal reforms and structural measures agreed to by Italy and Spain, adding that a decisive and swift implementation of the measure would rapidly reduce public deficits. In light of these events, and the