| 12.6°C Dublin

Davos 2015: 'ECB stimulus will be good for jobs and economy' - Taoiseach Enda Kenny

Close

Taoiseach Enda Kenny speaks at the Europe's Twin Challenges: Growth and Stability event in the Swiss mountain resort of Davos January 22, 2015.

Taoiseach Enda Kenny speaks at the Europe's Twin Challenges: Growth and Stability event in the Swiss mountain resort of Davos January 22, 2015.

REUTERS

Taoiseach Enda Kenny speaks at the Europe's Twin Challenges: Growth and Stability event in the Swiss mountain resort of Davos January 22, 2015.

THE European Central Bank's landmark bond-buying programme will hopefully lead to lower interest rates for business and consumers, and will be good for jobs, Taoiseach Enda Kenny said in Davos.

To boost the ailing Eurozone economy and prevent deflation from setting in, the ECB said it will buy €60 billion of assets a month from March, focusing mainly on sovereign bonds.

Mr Kenny said the move was good for Ireland.

''It is in keeping with the ECBs independent remit. Anything that will help price stability at a European level is good for Ireland.

''It is good for jobs and good for what we offer in terms of the hospitality sector. And I would hope that this would lead to lower interest rates for business and for consumers and that means a potential for jobs as a consequence. So Ireland welcomes this. ''

It is understood that the so-called 'Quantitative Easing' (QE) plan would see the Central Bank of Ireland buy about €16bn worth of Irish government bonds. But officials said the Government saw no specific financial risk to Ireland.

''There is an element of risk there, but every country is treated the same,'' Mr Kenny said.

Earlier IMF chief Christine Lagarde said the massive bond buying programme should help to boost the Eurozone economy, but would not be enough.

''We need deep structural reforms that will help competitiveness,'' she said.

Bank of England chief Mark Carney said the plan laid the foundations of more prosperity in Europe.

Online Editors