European Central Bank President Mario Draghi said policy makersagreed to an unlimited bond- purchase program to regain control ofinterest rates in the euro area and fight speculation of a currencybreakup.

The program “will enable us to address severe distortions ingovernment bond markets which originate from, in particular,unfounded fears on the part of investors of the reversibility ofthe euro,” Draghi said at a press conference in Frankfurt after theECB held its benchmark rate at a record low of 0.75 percent. “Underappropriate conditions, we will have a fully effective backstop toavoid destructive scenarios with potentially severe challenges forprice stability in the euro area.”

Draghi has staked his credibility on the bond plan, tellinglawmakers in Brussels this week that the ECB needs to wrest backcontrol of rates in a fragmented economy and save the singlecurrency. Now it's up to governments such as Spain and Italy totrigger ECB bond purchases by requesting aid from Europe's rescuefund and signing up to conditions.

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