The flexibility of the Eurosystem’s operational framework has proved invaluable during the crisis, and it will allow the Eurosystem to adjust, if necessary, to a possibly change in the financial landscape. Of course, the recent sovereign debt crisis in some euro area counties poses additional challenges, also for the Eurosystem.
In this regard, it is essential that prudent fiscal and economic policies are employed in all euro area countries. This will reduce bank’s current over-reliance on central bank funding and facilitate the ECB’s task of delivering price stability.