This aims to mitigate the risk, to the extent possible, of banks failing in the future, thereby weakening the economy and the public finances of one country with negative spillovers across the entire euro area. The question of whether to expand the euro area is and should remain a political decision to be taken by citizens and their elected representatives.
Even – and especially – in times of crisis, monetary policy depends on three things: the appropriate scale, the right choice of instruments and clever programme design. These are the subject of intense debate in the ECB Governing Council, and the trade-offs can also vary. There has certainly been a need for monetary policy action in recent times.