The European Central Bank (ECB) has announced an historic measure to try to boost the euro zone economy. ECB President Mario Draghi announced a full-scale quantitative easing programme - a move which is set to see €1.1tn being injected into the euro zone economy.

This is double the size of the stimulus package that many analysts had been expecting. The flood of money should bring borrowing costs down, boost bank lending, and weaken the euro further to bolster its competitiveness.

The debt-buying initiative will see 60 billion euro worth of debt-buying per month over an 18 month period, it is hoped that flooding money into the market will alleviate deflationary pressures. The current rate of inflation in the euro zone is -0.2 percent.

The QE programme was announced two-and-a-half years after Mr Draghi pledged to "do whatever it takes" to save the euro.

The Minister for Finance has said he hopes the ECB’s quantitative easing programme works and helps to fix the ailing Eurozone economy.

Speaking in the Seanad this evening Michael Noonan says there should be a benefit to the Irish economy:

“I think that will be of benefit to the Irish economy as well and I hope, as the Taoiseach said, that it helps to continue to grow the economy to sustain the recovery, to create more jobs. It’s a very significant step and I hope it works,” Mr Noonan said.

Tánaiste Joan Burton said the programme was “absolutely essential” for a “social recovery” in the eurozone where “citizens share in the benefits of renewed growth and prosperity."

“While it sounds technical, this is about improving people’s lives,” Ms Burton said.

“I have long since argued for a shift in approach at European level so that we prioritise investment, jobs and growth and tackle the eurozone’s enormous unemployment problem.

“Crucially, the programme should also help pull the eurozone away from the dangers of deflation,” she added.