ECB executive board member, Isabel Schnabel, tweets
In my interview with @mastrobradipo @repubblica, I argue that the @ecb has responded swiftly and forcefully to the deep crisis that Europe is facing. The impact of our measures is substantial, and we stand ready to expand all of them, as needed, in line with our mandate.Many of the #ECB's monetary policy measures are bank-based, which is crucial for countries like Italy where small and medium-sized enterprises play an important role. The #ECB always assesses carefully that its measures are suitable, necessary and proportionate.We need to make sure that our monetary policy is transmitted to all parts of the euro area. Diverging spreads are often a sign of fragmentation, and we are fully committed to countering such developments. The #PEPP is the right policy tool in this respect.We should be happy that Germany is no longer sticking to the "black zero". But it would be harmful if the countries hit the hardest spent the least to fight the crisis. This is why an adequate European response is so important. We are all sitting in the same boat.The best way to reduce the public debt burden after the crisis is to strengthen economic growth. A sizeable European recovery fund, providing a mixture of loans and grants, is needed to foster investment. Support for the private sector could also include equity-type funding.The #euro enjoys broad-based popularity in the euro area. It is our task to preserve and foster this popularity by supporting European households and firms in these difficult times, and by explaining the benefits that the euro brings to all citizens of the euro area.
Bolding what I feel are the relevant parts of her message. She pretty much covers all the necessary points that the ECB has been hammering home over the past few weeks.
That is they will continue with their current mandate (ignoring the German court ruling), sticking with PEPP to address the blowup in the yields spread, and maintaining that a cohesive government response in the region is much needed to support their policies.
