Tensions that have been simmering in euro zone are set to come to a head this week as the Governing Council of the European Central Bank (ECB) meets in Frankfurt on Thursday - January 22nd. ECB President Mario Draghi met German Chancellor, Angela Merkel on Wednesday of last week - he is reported to have revealed to her details of the ECB's proposed quantitative easing (QE) programme.

According to reports in German magazine Der Spiegel, the ECB President outlined his plans for a QE programme that would leave the burden of risk with national central banks, who would buy the bonds of their own countries - rather than the ECB.

This would mean that individual governments will face the risk of losses on those bonds. If the bonds were on the ECB's balance sheet then the burden would be shared by all euro zone countries. This would allay German fears that the QE would mean stronger economies effectively-bailing out peripheral countries.

While this would make the measure more palatable for countries like Germany and the Netherlands, but it would not be as powerful a statement as a broader programme.

During the press conference after the Governing Council's December meeting Mr Draghi said that a mass bond buying plan could be launched without German approval, as unanimous support is not needed to use the unconventional economic tool.

If QE close to €500bn is announced on Thursday - Mr Draghi will be under pressure to convince investors that the programme is large enough to stimulate Europe's struggling economy. At this point the failure to make an announcement, or a failure to act on the scale that the market is expecting, could be disastrous.

QE is a big-bang solution, as it makes concessions to key countries, the ECB runs the risk of underwhelming markets. Some analysts believe that the touted €500bn-€600bn package will not be enough to kick-start the European economy, and that either an uncapped programme, or one closer to €1 trillion is needed.