European Central Bank president Jean-Claude Trichet said the bank will continue its Securities Markets Programme to tackle the Eurozone sovereign debt crisis.

Trichet said the programme will restore 'a better transmission' of monetary policy decisions to ensure price stability in the area.

The ECB head was prompted into action following a round of discussions by Eurozone governments over the crisis affecting Italy and Spain.

Trichet said the bank welcomed measures by Italy and Spain to tackle problems and commitment by France and Germany to implement agreed fiscal targets.

He added that it was 'fundamental' Eurozone governments were ready to activate the European Financial Stability Facility in the secondary market once operational.

David Miller, partner at Cheviot Asset Management, welcomed the Trichet's comments over the weekend.

He said, 'Intervening to support the bond markets of economies like Italy and Spain is a significant step, and the fact that the German Government is behind this removes doubt about its commitment to the future of the Eurozone.

'This is very good news and shows that finally the politicians have grasped the nettle.'

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