The European Central Bank has signalled that market turmoil and mounting risks to the eurozone economy will not deter it from withdrawing one of the most important parts of its crisis-era stimulus, as it confirmed plans to halt its quantitative easing programme by the end of this year.

Speaking in Frankfurt on Thursday, ECB president Mario Draghi highlighted the eurozone’s “broad-based” economic growth. He added he was “confident” the Italian government — which is defying EU spending rules with its budget plans — would reach agreement with the European Commission.

However Mr Draghi acknowledged the “weaker momentum” of the eurozone economy, noting the threats posed by a global trade war, trouble in emerging markets and the worsening political climate in Italy.