Spain, Italy seek action by ECB

Spain and Italy, those which appear at greatest risk with Portugal of deepening debt is turbulence from the euro zone are wrapped an effort more decisive action of the European Central Bank incentive to prevent that continue leading the crisis.

€ 67.5 Billion (88.2 billion$) plan to save Ireland, Governments who signed European Union Sunday little relief from the crisis, the hopes of European Heads of State and Government dashing offered. Since then, borrowing costs for the three Governments rose sharply.

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On Wednesday, but facilitates market pressures amid expectations that is the ECB to deliver a tonic for bond investors spooked by announcing an extension of your bond purchase programme to its monthly meeting on Thursday.

European policy makers recognize the ECB, that pressure on a Central Bank that notoriously jealous backfire on their independence could not open key.

Private, Italy, said Spain and Portugal have pushed by the Central Bank for strong and decisive action, officials.

Olli Rehn, the economic Commissioner said on Wednesday that he would not "prophet" about what the ECB would do, but said that he was convinced that, with other measures "a solid basis for the continuation of stabilization actions could be his actions."

French Finance Minister Christine Lagarde does not comment on the meeting, but told reporters in Paris: "I am delighted with the very active role played by the ECB on our side." She added "Europeans…are uniquely qualifies and is committed to defend your currency and their monetary zone."

Plans, assets, as much as 14 billion € sell - including the privatization of the country ´s above two airports and a 30% stake in the National Lottery - and a long-term unemployment benefits, to terminate the advanced Spanish Prime Minister José Luis Rodriguez Zapatero on Wednesday.

In the Parliament in Madrid on Wednesday sell associated press of Spanish Prime Minister José Luis Rodríguez Zapatero, who spoke plans of for State assets, driven.

Italian political leaders voiced concern at the increase in the Italian bond spreads this week say are the result of speculative attacks where doing nothing are solid economic fundamentals you say with the country. Consensus is growing that assertive moves itself by the ECB necessary to reassure the markets, an official said.

European officials said Mr Zapatero, Italian Prime Minister Silvio Berlusconi and Portuguese Prime Minister José Socrates Monday night to a EU-Africa Summit in Libya fulfilling EU President Herman van Rompuy and President of the European Commission José Manuel Barroso to discuss the crisis.

At the meeting in the Hall of the luxurious Al Nasr said Rixos Hotel in Tripoli, Spain for a coordinated, pushing "faster and more active" EU response to counter market pressures that a person with the situation familiar. This includes the ECB would increase purchases of government bonds rather than a "Ghost with his hands tied by the German" said that person.

The opposition in Germany an aggressive expansion of the program is strong and may be a factor hindering the kind of actions seeking Spain and Italy. Germany's financial support for EU guided saves is crucial to solve for the debt crisis.

Axel Weber, the German Central Bank Chief became the loudest ECB bond purchase, say it blurs the line between finance and monetary policy. German Finance officials criticized circuit U.S. Federal Reserve's recent expansion his Government bond purchases.

José Antonio Alonso, leader of the ruling party in the Spanish Parliament said on Tuesday that measures such as the Fed should consider the ECB "quantitative easing".

But the ECB bond purchase on the fades in importance when compared with that fed their quantitative easing-Programme for the purchase of bonds and other assets call estimated at 14% of U.S. economic performance, according to analysts of BNP Paribas.

Analysts doubt do the ECB on this scale. On Monday, the ECB said it bought last week, the largest amount since September, had on the total number more than 1.3 billion euros in peripheral bonds which over €, because the program beginning created 67 billion.

Other possibilities for measures have been taken into account include expanding the two EU bailout funds, now a total of 500 billion €. But said the officials who has not yet widely discussed, because of the German opposition, and because it expects a destabilising signal to investors that the EU would send infection Spain Italy to spread.

Spanish, argue Italian and Irish officials that a decisive factor behind the recent volatility in the euro zone debt markets the German was insist that holders of government bonds should be forced to take losses at a bailout after 2013 a bankrupt country. A plan based on the German approach by euro area Governments Sunday night adopted.

"This is the primary source of turbulence," said Deputy Finance Minister José Manuel Campa in Parliament on Tuesday noting that Mr Zapatero against the proposal on numerous occasions, had spoken out.

German officials say they are sensitive to criticism. Germany's leaders seem still have concluded that you must use the leverage effect of the Berlin purse, enforce controversial renovation such as the bankruptcy framework that would face the crisis, stiff resistance absent.

Berlin has been carefully to secure support from France for its initiatives. The EU of's second largest Member's support has prevented that social solidarity against Berlin on Europe's fringe from a more serious political problem within the EU.

-Jonathan House, Alessandra Galloni, David Gauthier-Villars and Riva Froymovich contributed to this article.

Write toSantiago Perez at santiago.perez@dowjones.com, Brian Blackstone brian.blackstone@dowjones.com and Stephen Fidler for stephen.fidler@wsj.com

Corrections and reinforcements
Silvio Berlusconi is Italy's Prime Minister. An earlier version of this article incorrectly the President called him.

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