Debt crisis: live

Jörg Asmussen warned in a speech last night that the European Central Bank must carefully tailor its bond buying plan and not repeat the mistakes of last summer when it bought Italian debt only for the country to renege on its reform pledges. He said:

There cannot be a repeat of the mistakes with Italy in the summer of last year, when the ECB bought Italian sovereign bonds and the time was unfortunately not used for necessary adjustment measures.

Mr Asmussen repeated that the central bank would "only act within [its] mandate". He added:

The whole discussion will be led by the requirement that any concerns about treaty-violating state financing are dispelled.

08.59 More bad news for Spain this morning. The economy shrank by 1.3pc on an annual basis in the second quarter, from previous estimates of 1pc, according to Spain's INE statistics office.

On a quarterly basis, the data remained unchanged. Spain's economy by 0.4pc between April and June, INE said, following a 0.3pc contraction in the first three months of the year.

The final estimate of GDP comes a day after data for previous years were also revised down.

Spain's economy grew by just 0.4pc last year, not the 0.7pc previously stated. Growth in 2010 was also revised down to -0.3pc, from previous estimates of -0.1pc.

08.45 Good morning and welcome back to our live coverage of the European debt crisis. Hope you enjoyed the bank holiday weekend.

Debt crisis live: archive