Euro Leaders Look to ECB for Help

Central bank is expected to cut rates at Wednesday’s meeting.

European leaders turn to the European Central Bank this week, seeking assistance from monetary policy makers to reinforce gains following euro-area leaders’ moves to calm markets and accelerate the currency bloc’s integration.

The Frankfurt-based ECB may offer help on July 5, with economists expecting an interest rate cut. The bank has a track record of action following political progress, including bond purchases that followed bailout programs and unlimited three-year loans on the heels of pledges supporting fiscal discipline.

‘Quite Pleased’

The decisions will add to the ECB’s powers, under clauses in existing EU treaties that could allow it to exercise prudential oversight of banks and other non-insurance financial companies. The central bank will now be at the center of Spain’s efforts to separate its government from the European rescue of its banking industry.

Borrowing Costs

Spanish Economy Minister Luis de Guindos said swift adoption of the summit’s decisions would help reduce his country’s borrowing costs.

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