New Crisis Plan from ECB

After the meeting, the European Central Bank (ECB) Governing Council instructed to prepare a new anti crisis plan.

Foreseeing the possibility of a new debt crisis, the European Central Bank (ECB) gave instructions that it would apply flexibility in reinvesting due principal payments of assets purchased under the Pandemic Emergency Asset Purchase Program (PEPP), and that they would develop a new tool to stop the divergence. ECB held a meeting about the current market conditions, which were not included in the ECB plans. It was noted that since December 2021, when the gradual normalization process in monetary policy was initiated after the meeting, the ECB's Governing Council has made a commitment to take action against the "decoupling risks". In the meeting notes, it was stated that the pandemic left permanent vulnerabilities in the Eurozone economy that contributed to the unbalanced transmission of monetary policy normalization. In the statement made by the bank, it was announced that within the scope of this assessment, the ECB Governing Council decided to act flexibly in reinvesting the principal payments of the assets in the bank's PEPP portfolio in order to preserve the functioning of the monetary policy transmission mechanism. In addition, the Eurosystem Committees of the ECB Governing Council were tasked with speeding up the design of a new anti-segregation tool, which, together with ECB services, would be submitted to the Governing Council's consideration.