Because some banks are still having difficulty in accessing market funding, this has translated into a moderate rise in money market rates of about 10 basis points. The monetary policy stance must not be altered by the condition of these marginal intermediaries. Their problems need to be dealt with by the relevant national authorities using appropriate instruments.
In Italy, a three-year budgetary adjustment package was approved in late May – ahead of the usual schedule in view of the financial market tensions provoked by the Greek crisis. The measures are designed to reduce net borrowing by € billion in 2011 and € billion in both 2012 and 2013.