The European Central Bank (ECB) is to embark on a bond-buying programme.

The move will see the Bank buy up debt across the Eurozone.

It is aimed at reducing borrowing costs for Italy and Spain but is also likely to benefit the Irish return to the markets next year.

The Governing Council is also leaving interest rates unchanged at the historic low of 0.75%.

It has also lowered the growth forecast and raised its inflation forecast for 2012.

Bank President Mario Draghi has unveiled details of new ‘Outright Monetary Transactions’.

This will see the ECB buying up government bonds from countries in difficulty.

This is something Mr. Draghi believes will assure the markets that the Eurozone is secure.

Seeking to back up his pledge to do whatever it takes to preserve the Euro the ECB chief said the new bond-buying program would “safeguard the monetary policy transmission in all countries in the Eurozone area”.

It would address bond market distortions and the “unfounded” fears of investors about the irreversibility of the Euro.

The scheme is known to have been opposed by the Bundesbank.

He said it would be a “fully effective backstop to prevent potentially destructive scenarios”.

He also says those predicting the demise of the Euro are wrong.

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