Mario Draghi said the European Central Bank is ready to move deeper into uncharted territory in the fight against deflation, with policy makers debating what form of quantitative easing they might need to use.
Ireland has been functioning thanks to rescue loans since 2010. The government has nationalized five banks and the country’s budget deficit will exceed 8 percent of output this year, European Union forecasts show.
The European Central Bank will restart its controversial government bond purchases rather than offer banks another round of unlimited three-year loans as the sovereign debt crisis worsens, a survey of economists shows.
European stocks advanced, with the Stoxx Europe 600 Index posting its biggest annual gain since 2009, amid shortened trading hours for New Year’s Eve before American consumer confidence and housing data.