European Central Bank President Mario Draghi signaled the ECB intends to join forces with governments to buy bonds in sufficient quantities to ease the region's debt crisis, while conceding that Germany's Bundesbank has reservations about the plan.

ECB bond purchases would likely focus on shorter-term maturities, would be conducted in a way to soothe investors' concerns about seniority, and wouldn't breach European Union rules prohibiting the financing of government deficits, Draghi told reporters in Frankfurt today. ECB officials are working on the plan and details will be fleshed out in coming weeks, he said.

"Risk premia that are related to fears of the reversibility of the euro are unacceptable, and they need to be addressed in a fundamental manner," Draghi said at a press conference after keeping the benchmark interest rate on hold at 0.75 percent. "The euro is irreversible." There is a "severe malfunctioning" in bond markets, he said.