We believe that the present monetary policy is appropriate in order to maintain price stability. In order to avoid changing our monetary policy by increasing liquidity, we are completely re-absorbing the liquidity provided as a result of these interventions. Q: Isn’t the ECB becoming a sort of “bad bank” which allows commercial banks to get rid of their dubious sovereign bonds?
The Governing Council also takes the view that the extension of the deadline, from 2005 to 2006, for correcting the excessive deficit pushes the room for interpretation of the rules and procedures to the limit. It is now indispensable for Greece to take effective action to correct its severe fiscal imbalances.