European Central Bank Council members urged that a quick end to the bank’s Government bond purchases is required. This was suggested by Axel Weber and Mario Draghi who are among the leading candidates to replace President Jean-Claude Trichet next year.

It was argued by both these members that ECB needs to discontinue these measures as soon as possible. The decision to stop buying Government debt on the secondary market did not get the support of all its 22 members. Some of the members openly and strongly criticized these moves.

ECB maintains that the move is aimed to restore normal functioning on bond markets. Experts also supported these moves which they feel are important for the long term health of the European economy.

Euro is down 19% as compared to US dollar in the last 6 months. Some experts fee that the problems in European Union have the potential to eventually destroy the 16-nation monetary union. To increase the confidence of the investors, European leaders unveiled a 750 billion-euro ($923 billion) rescue fund on May 10. It was announced by ECB after the decision that it will purchase bonds to help reduce yields and make it cheaper for embattled Governments to borrow. Bond yields were up in some countries after falling initially.

The current ECB warned that the banks remain independent and warned the Governments to take measures to control their budgets.