The head of sovereign ratings for Fitch, David Riley said today that the European Central Bank should buy more bonds of European indebted nations in order to shield Italy and prevent the common currency from a possible collapse.

Riley also said that the failure of the common currency could trigger more challenges to the global economy; however, Fitch rules that out unless Italy wasn't able to fight the debt crisis and failed to reduce the huge amount of debt that the nation handles.

The end of the euro would be cataclysmic. The euro is a reserve currency, Riley said. What would that do in terms of financial and political stability?

David Riley added that It is hard to believe the euro will survive if Italy does not make it through, explaining that one might argue that it is too big to rescue.

The Rating Agency also urged the European Central Bank to intervene and prevent the debt crisis from hurting larger economies, where Riley said that the ECB has several tools to fight the crisis; however, insisted that the bank should increase purchases of indebted bonds.

Can the euro be saved without more active engagement from the ECB? Quite frankly we think no, Riley said.

Why not have the ECB come out and say 'We are going to cap interest rates', say 'We are not going to allow interest rates to exceed 7 percent' or whatever level they see is the limit?.. Why not turn the EFSF into a bank so it can borrow from the ECB so it doesn't have to go to the market?