The Euro system of central banks has decided to intervene decisively on markets to respond to the escalating debt crisis, a euro zone monetary source said after a European Central Bank conference call on Sunday.

Officials on the conference call carefully considered the situation in Italy and Spain, and took note of a statement by France and Germany which stressed their commitment to European financial reforms, the source said.

The Euro system will intervene very significantly on markets and respond in a significant and cohesive way, the euro zone monetary source said, adding a statement by the ECB will be issued shortly.

(Editing by Sophie Hares)

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