Opinion turns on ECB intervention pledge

THE European Central Bank (ECB) has broken new ground in the eurozone crisis with hints that it could start unlimited buying of stricken member states’ bonds to drive down their crippling borrowing costs.After initial disappointment at ECB head Mario Draghi’s failure to take immediate action to help ailing countries at a meeting on Thursday, many analysts were more encouraged after giving his remarks a second reading.Mr Draghi said the central bank could intervene directly in the bond markets under a programme known as SMP to help countries left high and dry in the crisis, but this depended on governments holding up their end of the bargain.He also said the ECB might consider additional measures to calm markets, which have driven borrowing costs for Italy and Spain near to levels that forced Greece, Ireland and Portugal to seek bail-outs.Under the SMP programme, launched in May 2010 and suspended four months ago, the ECB had said its purchase of sovereign bonds was limited in time and amount.Christian Schulz of Berenberg bank said the ECB had "finally stepped up to the plate meaningfully", which could help head off further trouble.