Better late than never. The reality of a recession bordering on a depression within some of their member states has finally dawned on the financial geniuses of the EU. Accordingly, they appear ready to engage in quantitative easing.

The Telegraph.co.uk. reports that though an official announcement has not been forthcoming the deal is indeed done.

The bank’s vice-president Lucas Papademos (ex-MIT, a heavy-weight) said: “It may be warranted that the central bank purchases private sector bonds to enhance liquidity. No decision has been taken, but it is a possibility that could improve the markets”.

“Potential measures could include an extension of the maturity of the central bank liquidity provided to banks and purchases of private debt securities in the secondary market”.

Hallelujah.

Nout Wellink, governor of the Dutch central bank, in turn said there is now “an increasing risk of deflation”.

I’ve detailed the disaster that is visiting various European countries on these pages and I’m sure you have read elsewhere of the carnage. While Rome has been burning the financial heavyweights spurred on by Germany’s reluctance to pay for the sins of other members have insisted that the dangers were well contained. The falsity of that assertion was visible to all but them.

It remains to be seen how soon and how aggressively they intend to act. As parts of the Union are desperately close to the precipice let us hope move with dispatch and vigor. Otherwise they may not have a Union to save.