Morning papers: Eurozone tension ahead of Draghi plan

World stockmarkets face one of the most nail-biting weeks since the eurozone debt crisis began almost three years ago, reports the Daily Mail.

The spotlight will fall on Mario Draghi (pictured), head of the European Central Bank (ECB), who in Frankfurt on Thursday is expected to make good his pledge to do whatever it takes to save the euro.

He is expected to announce a major new bond-buying programme aimed at driving down Spain and Italy’s borrowing costs, restoring confidence and preventing the crisis spiralling out of control.

ECB should launch ‘unlimited’ bond buying, says OECD

The ECB should launch an “unlimited” bond buying programme as part of vital efforts to stem the debt crisis, the secretary-general of the Organisation for Economic Co-operation and Development (OECD) has warned, reports the Daily Telegraph.

Angel Gurria’s warning came as Spanish leader Mariano Rajoy said he would consider asking for extra aid on top of the country’s €100bn (£79.3bn) bank bailout.

EU to push for wide oversight of banks

The ECB should police the more than 6,000 banks in the eurozone, the EU’s executive said on Friday, setting itself up for a clash with Germany, which wants to retain oversight over smaller lenders, reports the Wall Street Journal

A proposal from the European Commission, to be finalised in coming days, will call for the central bank to set up an agency to take responsibility for supervision of all banks in the 17-nation currency area.

Cameron seeks fresh growth strategy

David Cameron will this week attempt to inject life into Britain’s stagnant economy and fend off growing Tory criticism of his leadership, with a series of measures to boost business lending, support new housing and streamline the planning system, reports the Financial Times.

George Osborne unveils plans to launch new bank to fund small businesses

George Osborne has made his latest bid to prop up the faltering economy by revealing plans to launch a small business bank to make it easier for growing companies to gain access to “multi-billion pounds” of government funding, reports the Daily Telegraph.

US investor is Ireland’s biggest creditor

Franklin Templeton’s Michael Hasenstab has emerged as Ireland’s single biggest private sector creditor by aggressively buying Irish government bonds, reports the Financial Times.

Mr Hasenstab at the end of June held Irish government debt to the value of €6.1bn, according to FT calculations. Most was owned in his £26.3bn Templeton Global Bond fund.

Mr Hasenstab told the FT that while the fund manager might have large positions in smaller markets, they remained small compared with the fund’s total assets, and it could always quickly hedge its exposure in the credit derivatives market.