The European Central Bank is backing away from any "big bazooka" style intervention to revive lending within the euro zone, delivering a blow to some market hopes of ambitious action.
Small and medium sized businesses that form the backbone of the Spanish and Italian economies have seen their borrowing costs rise to unaffordable levels during the crisis while interest rates charged to their German counterparts are near record lows, reflecting the ECB's rates.
This credit crunch, first revealed by the ECB's own data, has become one of the most visible examples of financial fragmentation dividing the 17-nation euro zone, prompting calls for action...continue
Small and medium sized businesses that form the backbone of the Spanish and Italian economies have seen their borrowing costs rise to unaffordable levels during the crisis while interest rates charged to their German counterparts are near record lows, reflecting the ECB's rates.
This credit crunch, first revealed by the ECB's own data, has become one of the most visible examples of financial fragmentation dividing the 17-nation euro zone, prompting calls for action...continue