Could the debt crisis prove deadly for the ECB?

F&C's director of global strategy Ted Scott on the changing role of the ECB during the debt crisis.

The ECB has played an active role in the debt crisis that has submerged the eurozone since early in 2010. During this time the ECB’s role has evolved; at the time of writing, in late-June, the ECB has tried to take a more independent line. This could be regarded as the ECB wanting to normalise its monetary policy; the reality is that, with the periphery countries it is trying to provide assistance to, the ECB has become so embroiled in the crisis that its own assets and capital have been severely weakened. The importance of this should not be lost on investors because it has, and will...